The 17-year-old singer –and-actress – who split from her 'Last Song' co-star in August after 14 months of dating – was spotted running errands with the Australian actor in Los Angeles on Saturday (11.09.10).
An onlooker told People magazine: "Miley and Liam kept smiling and seemed to really enjoy their afternoon together. They acted like they had missed each other, kept chatting and seemed to be catching up. They definitely seemed like a couple again."
Pals claim that Miley – who has been filming 'LOL: Laughing Out Loud' in Paris, France – has relaxed more since reuniting with the 20-year-old star.
One source said: "Since Miley returned to Los Angeles from Europe earlier in the week, she has acted a bit tired and worn out. With Liam back in her life on Saturday, she acted totally different and, instead, seemed very happy. It looked like Miley and Liam had never been apart, and they were back into their old routine."
Friends of the star recently admitted while Miley is currently too focused on her career to have a relationship, they wouldn't rule out the couple reconciling in the future.
A pal explained: "Miley has been super focused on her work. Liam wanted more, but she's 17 and has other priorities right now. He's been a distraction.
"She is not ready to settle down, and Liam's not a happy camper. They're both young. To say they are done forever would be premature, but it's safe to say for now they are doing their own thing."