Ashlee Simpson, Pete Wentz

Chris Polk/

Ashlee Simpson's new album drops next week, but her biggest project to date will take a little longer to incubate.

The freshly betrothed "Pieces of Me" warbler and Fall Out Boy fiancé Pete Wentz are expecting their first child, a source close to Simpson told E! News.

"It's very early" in the pregnancy, the insider said, adding that Simpson, 23, and Wentz, 28, informed their families of the impending stork delivery just last week. Over the weekend, the couple began divulging the happy news to a few close (and apparently loose-lipped) friends.

Wentz, however, quickly called foul on the pregnancy reports, denying that there's any "shotgun" involved in their upcoming wedding.

"There is a witch hunt for people to be pregnant whenever they get engaged in Hollywood," the rocker wrote in an email to MTV News. "This is all news to me. I can't wait for the story about how I'm really in a gay relationship and this is all just a cover."

"I mean really, this is crazy...I mean we're engaged, that's true, and happy about it."

When asked specifically if he was denying that Simpson was pregnant, Wentz replied, "Yeah."

As for the couple's families, the only announcement they made Monday was to congratulate the lovebirds on their planned nuptials.

"We're very happy as a family and excited about the engagement," Joe Simpson told E! News' Ryan Seacrest on Monday. "We think Pete is the right guy for Ashlee."

Wentz's mom, Dale, also was mum when it came to taking about grandkids and focused on the couple's other news. "We think that they are great together and are thrilled to have Ashlee join our family" the Winnetka, Ill., school administator told E! News.

Likewise, a joint statement from the couple's reps hewed to the party line.

"We are thrilled to confirm their engagement and congratulate this happy couple," the reps said. "Beyond that, there is nothing to add."

Expect the younger Simpson to get peppered with pregnancy questions as she makes the rounds in New York later this week to hype her upcoming third album, Bittersweet World, due April 22.

The with-baby news surfaced earlier Monday in Us Weekly and OK! magazine, the latter of which pegs the due date in October.

Simpson and Wentz, who have not set a wedding date, disclosed their engagement last week, just as Fall Out Boy's latest, Live in Phoenix, hit stores.

"We know there has been a lot of speculation recently about Pete and I and we wanted our fans to be the first to know, because you guys are the best," Simpson wrote on "Yes, we are thrilled to share that we are happily engaged.

"We consider this to be a very private matter, and we wanted to be the first to tell you and to hear it straight from us."

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