The news comes as the 20-year-old Hannah Montana star had previously insisted that she and her fiance, 23, were still together.
But sources have told the New York Post’s Page Six that the couple have called time on their relationship.
Reports that there was trouble in paradise first arose after it was alleged that Liam and Mad Men actress January Jones reportedly got ‘hot and heavy’ at a pre-Oscars party last month.
Last week Jones stayed resolutely silent as she was hit with a barrage of questions about her alleged flirtation with Liam.
Last Thursday, January was not talking about the reported flirtation with Miley’s fiance as she jetted into Los Angeles from Paris Fashion Week.
Asked why she was sharing a car with the Australian actor as they left the Oscars party, January had nothing to say, ignoring the questions.
But despite the allegations, insiders insist the pair have been friends for some time.
A source explained: ‘[They] used to go clubbing together in Los Angeles. They have been friends for a while.’
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