Zac Efron spotted on date with Teresa Palmer

The 23-year-old was rumoured to be reconciling with ex-girlfriend and High School Musical co-star Vanessa Hudgens.

But according to People, the actor was spotted holding hands with Palmer at a reception for her forthcoming comedy Take Me Home Tonight on Tuesday.

A source told the website: 'There was definitely some hand-holding. The two ate together and seemed really engaged in conversation. They seemed really into each other. They weren't trying to hide their affection at all, even though they knew people were watching them.'

The pair then moved on to West Hollywood nightclub Voyeur, where the action is said to have got even hotter.

An onlooker said: 'He was grabbing her butt and doing very suggestive dancing. Then they made out a couple of times standing up where they were dancing. I was surprised they were doing that in front of everyone. It was like they didn't care.'

The source added to E!: 'They were there for like an hour and left together.'