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Miley Cyrus, Liam Hemsworth

Kevin Winter/Getty Images

What what what?

Talk about your New Year's surprise: Miley Cyrus and ex-fiancé Liam Hemsworth reunited in his native Australia on Sunday, sparking speculation they may be rekindling their romance, two years after they split and ended their engagement. Cyrus, 23, and Liam, 25, have not commented.

A source told E! News that two were spotted "cuddling and kissing" at the Falls Music Festival in Byron Bay, which they attended with the actor's family, including brothers Chris Hemsworth, 32, and Luke Hemsworth, 35, and their wives. Another source said the two attended the event with several people and appeared "affectionate" while hanging out backstage in a VIP area, adding, "Liam was seen rubbing Miley's back at one point."

The Australian Telegraph newspaper further reported that the pair spent about half an hour in the VIP area drinking with friends and then watched the music festival from a general viewing area. They were protected by security to ensure people did not photograph them.

The Last Song, Miley Cyrus, Liam Hemsworth, Greg Kinnear

Touchstone Pictures/Sam Emerson; JOE SCHILDHORN/PatrickMcMullan.com

Cyrus and Liam, who met on the set of the 2010 romantic drama The Last Song, got engaged in 2012 and broke up a year later. They had remained friendly and last reunited at a pet adoption event in Los Angeles in November. 

"Me and Liam are still so close and we love each other," Cyrus had told Elle U.K. magazine in September.

"We were together five years, so I don't think those feelings will ever change," Liam told Men's Fitness a month later. "And that's good because that proves to me that it was real. It wasn't just a fling."