Olivia Wilde and Jason Sudeikis Are 'Rebuilding Their Friendship' as She Continues to Date Harry Styles

Olivia Wilde Jason Sudeikis Split
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A source tells ET that things between the two 'have gotten better.'

Olivia Wilde and Jason Sudeikis are working on repairing their friendship following their split.

A source tells ET that while Wilde is "so happy" in her new relationship with Harry Styles, the actress is glad Sudeikis is now "in a good place, too." News broke back in November that Wilde, 36, and Sudeikis, 45, called off their engagement after seven years. They share two children, son Otis, 6, and daughter Daisy, 4.

"Jason was initially really hurt about Harry and Olivia's relationship, but now that he's doing his own thing, things between him and Olivia have gotten better," the source says. "They're rebuilding their friendship again and co-parenting together."

A second source told ET that Sudeikis and British model Keeley Hazel are currently "seeing each other, having fun and seeing where things go." The two have known each other for years, ever since meeting on the set of Horrible Bosses 2 in 2014

"Olivia is not bothered by Jason and Keeley's relationship," the source added. "[She] has definitely moved on."

Earlier this month, an additional source told ET that Sudeikis is not ready to re-enter the dating game just yet. As for reports that he was dating British model Keeley Hazell, ET has learned that the two have known each other as platonic friends for years, ever since meeting on the set of Horrible Bosses 2 in 2014. ET's source added that Hazell has been a great friend to him throughout this breakup.

Meanwhile, things seem to be heating up between Wilde and Styles. A third source told ET earlier this month that Wilde and her new 27-year-old beau "have been inseparable." They recently spent time in Styles' native country of the United Kingdom after wrapping production on Don't Worry Darling, which Wilde directed and the "Golden" singer stars in.

"Even in the days since it wrapped, they're still spending all their time together," the source said.

Romance rumors between Wilde and Styles first sparked in January after they were snapped holding hands at a wedding. Hear more in the video below: