Leonardo DiCaprio and Gigi Hadid 'Like Each Other and Are Having a Good Time': Source

The budding romance between Leonardo DiCaprio and Gigi Hadid is slowly heating up.

The Oscar-winning actor, 47, and the supermodel, 27, who were photographed together at a New York Fashion Week party at Casa Cipriani Sept. 10 "like each other and are having a good time," a film source says in the new issue of PEOPLE.

Though DiCaprio recently parted ways with girlfriend of four years, model Camila Morrone, 25, he "is taken with Gigi," according to an entertainment source. "She is the type of woman he is usually attracted to."

The pair have known each other casually for years. "They sort of run in the same high profile circles and would see each other at events, clubs, restaurants and gatherings," says the film source.

RELATED:  Camila Morrone 'Doing Fine' After Leonardo DiCaprio Breakup, Says Source: 'Moving on with Her Life'

But there was never an opportunity to connect because they both were in relationships. The acquaintances only sparked after DiCaprio split from Morrone, and Hadid—who ended her rocky five-year romance with singer Zayn Malik in October 2021—caught his eye. "A smart and successful girl like Gigi would intrigue Leo," says the film source.

Kevin Mazur/Getty Images; Mark Sagliocco/Getty Images

Despite their mutual attraction, DiCaprio and Hadid, who has a thriving career and a two-year-old daughter, Khai, with Malik, 29, are in no rush to put a label on their situation, which is not yet "serious," according to the entertainment source.

"Leo has not been out of his relationship with Camila long enough to jump headfirst into anything," according to another insider, who doesn't rule out a reunion. "I am not sure he is completely finished with Camila. That was a long romance."

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As PEOPLE previously reported, DiCaprio has been spending time in the Big Apple, which Hadid calls home. He has been spotted exploring the city while Hadid has walked in shows for designers like Tom Ford at New York Fashion Week.

"He really likes that she has her life together," a source previously told PEOPLE. "She has a child and she's mature. He wants to be with someone who has the same idea of good causes and political views like he does."