"Olivia and Jason ended amicably and both wanted to remain close and stay friends for the sake of their kids and because they have mutual respect and love for one another," ET's source says, explaining that Sudeikis had hope he and Wilde "would eventually reconcile and get back together." "He has been really hurt and somewhat jealous that Olivia has moved on with Harry."
News of Wilde and Sudeikis' split broke in November, seven years after they got engaged. However, a source recently told ET that the couple -- who share a 6-year-old son, Otis, and a 4-year-old daughter, Daisy -- actually "split almost a year ago."
Wilde and Styles sparked romance rumors last week, after they were spotted holding hands at a wedding in Montecito, California. Wilde is currently directing Styles in her upcoming psychological thriller, Don't Worry Darling.
"Olivia has always admired and liked Harry and specifically wanted to cast him because of that and she thought he would be perfect," ET's source shares. "Olivia is really happy with Harry and they have fun together and have gotten to be really close through spending so much time together both on set and in their personal lives."
"To me, he’s very modern and I hope that this brand of confidence as a male that Harry has -- truly devoid of any traces of toxic masculinity -- is indicative of his generation and therefore the future of the world," she said of the "Watermelon Sugar" singer. "I think he is in many ways championing that, spearheading that. It's pretty powerful and kind of extraordinary to see someone in his position redefining what it can mean to be a man with confidence."