Prince Harry, who had split from long-term girlfriend Chelsy Davy three months ago, was spotted with glamorous television host Caroline Flack.
Harry and Flack were spotted emerging from a flat in Fulham, West London Friday.
"They were having a great time and you could hear music, laughter and the clinking of glasses coming from within. Harry and Caroline were clearly getting along very well, they were laughing and joking and their body language showed they were relaxed in each other's company," dailymail.co.uk quoted an onlooker as saying.
Dressed fashionably in a tight-fitting white T-shirt and beanie-style hat, Harry smiled as he joked with the 27-year-old presenter.
A spokeswoman for Flack, who is single, said Saturday: "There is no romantic link between them - they are just friends. I believe the group went on somewhere else but I'm not sure where."
Flack, host of Sky TV show Gladiators, has known Harry for a year. However, the link between the two has not been made public until now. They were introduced by mutual friend Natalie Pinkham, who Harry was famously pictured groping in a nightclub several years ago.
Flack's big TV break was as a co-presenter on BBC2's Saturday morning children's show TMI. Her other roles include hosting Big Brother's Big Mouth, an offshoot of the reality TV show on which Russell Brand made his name.