Blake Lively and Leonardo DiCaprio Take Their Reported Romance to Italy

After first being spotted partying on Steven Spielberg's yacht in Cannes, France, the elusive are-they-or-aren't-they-a-couple Blake Lively and Leonardo DiCaprio have resurfaced again, on another boat  -- this time in Venice, Italy, on one of the water taxis that cruise the famous canals.

The photo of the pair that has been circulating the Internet shows Lively looking serious while talking on her cell phone, while DiCaprio sits up front with the driver of the water taxi.

Lively could be upset about the ongoing nude photo scandal which has dogged her for a couple of days since the photos surfaced. A rep for the 23-year-old actress has declared the photos -- which show a blonde Lively (sans new red hair) taking pictures of herself with her iPhone in a bathroom mirror -- "100% fake." Team Lively has threatened legal action against media venues who run the photographs.

After breaking things off with his gorgeous on-again off-again girlfriend Bar Rafaeli, DiCaprio has been spotted out and about in Europe with the Gossip Girl star.

"I've never seen him like this with a girl," a source tells Us Weekly about DiCaprio, which reports that the actor has wooed Lively with at $5,000-a-night suite at the Hotel de Paris among other luxuries during their European sojourn.

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