THE SIMPLE LIFE star Nicole Richie and former fiance ADAM 'DJ AM' GOLDSTEIN are reportedly rekindling their romance after they were spotted holding hands during a romantic dinner in Los Angeles.

The couple called-off their engagement on 7 December (05), but recently reunited for dinner at romantic Italian restaurant Il Sole.

A witness says, "They were seated outside on the patio and held hands across the table."

A representative for Goldstein says, "(The dinner) doesn't mean they're back together. The two remain friends."

Richie has been scouting locations in Los Angeles to open her own nightclub, which will compete directly with DJ AM's nightclub, LAX.