Credit: Giovanni Rufino / The CW Photo: Lily (Kelly Rutherford) and Rufus (Matthew Settle) Dance At Their Wedding on Gossip Girl

Now that Penn Badgley (Dan) and Blake Lively (Serena) have broken up, it appears there's some room on the (very crowded!) Gossip Girl love train; room that Kelly Rutherford and Matthew Settle might be occupying!

According to our on-set insider, Kelly and Matthew are getting their Lily and Rufus on. "[They're] VERY close on set," our spy says. "They are giggling a lot and nudging each other." Scandalous!

Both stars are recently divorced. Kelly is single, but Matthew has been linked to Leyla Vassighy, a fashion maven who works for designer Brunello Cucinelli. Hmm... wonder what she'll have to say about all this!


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