The actor recently ended his four-year relationship with Camila Morrone.
A source tells ET, "Gigi and Leo are dating and into each other."
Per the source, the Oscar winner, 47, and supermodel, 27, were together at Casa Cipriani in New York City on Saturday night and "looked very flirty."
"They were sitting in the dining room area and were canoodling and having a fun night out with each other," the source described.
A second source added, "Gigi arrived at Casa Cipriani a while after Leo did. They like going there because they can be private and not worry about pictures being taken of them or people noticing them too much. They are having a good time together and Leo is very attracted to Gigi."
This is the newest development after a source recently told ET that DiCaprio and Hadid have been spending time together. "He likes her," the source said, "but things are still new.”
While the Don’t Look Up star has taken an interest in the model after splitting from 25-year-old Camila Morrone, he’s also been spending time with his pals.
“He has also been hanging out with his guy friends since his split from Cami,” the source adds.
"Leo and Cami broke up," the source said. "They've been spending a lot of time apart this summer and doing their own things."
The pair, who remained very low-key during the course of their relationship, sparked romance rumors in 2017. During their time together, the former couple, whose romance was overshadowed by their 23-year age difference, never posed on the red carpet together.