REESE WITHERSPOON and JAKE GYLLENHAAL were both in Toronto Friday at the annual Film Festival to talk about the upcoming drama 'Rendition,' but talk quickly turned to their headline-making rumors about them.

"At this point it's all just funny," Reese tells our JANN CARL. "It's crazy and funny how much people can make stuff up. I'm actually interested to hear what they say next."

Reese says the rumors are not an issue between her and Jake. "We never discussed that," she says. "I just have to laugh at a lot of stuff."

Jake also finds the gossip amusing. "There are a lot of very interesting rumors swirling around all the time that you just have to have fun with," he says. "The interest is flattering but funny too."

'Rendition' hits theaters October 19 and Jake and Reese say they didn't even have a chance to work together.

"She is a wonderful actress and it would've been nice to work with her," Jake says.

Reese was also disappointed. "I found out I was doing a movie with Jake Gyllenhaal and didn't have any scenes with him -- darn it! But hopefully it opens up room for us to do a movie together."