Demi Moore has sparked speculation she is enjoying a new romance after she was snapped cuddling a mystery man during a festive vacation.

The actress, who finalised her divorce from Ashton Kutcher in November (13), was spotted embracing a younger man in Mexico last Sunday (29Dec13).

Moore, who was enjoying a sun-soaked break with her daughter Rumer, separated from Kutcher in 2011 after six years of marriage and filed for divorce in December, 2012.