Miley and Liam
Cast member Miley Cyrus and co-star Liam Hemsworth attend the premiere of "The Last Song" at the Arclight theatre in Hollywood, California March 25, 2010. Reuters/Mario Anzuoni

News of Miley Cyrus getting back with her ex-fiancé Liam Hemsworth has been making the rounds ever since the duo was spotted celebrating New Year's together. There is speculation in the media that the “Wrecking Ball” songstress and her Australian actor-boyfriend have spent the past few days in Byron Bay with his family.

The “Hunger Games” actor and the singer were spotted getting cosy with each other at the Falls Music Festival at Byron Bay on Sunday night. According to The Daily Telegraph, which also published their recent pictures, the couple arrived at the festival late in the evening. The duo went backstage towards the VIP area, where they were joined with his brothers Chris and Luke and their wives, Elsa Pataky and Samantha.

Miley and Liam reportedly spent about half an hour in the VIP area, where they mingled with friends by having drinks. The duo then moved to the open arena and enjoyed Disclosure’s 90 minute set with general public.

A source close to the couple told E! News that Miley still has the same feelings for the actor and both are looking forward to get together as a couple. "Miley came back to LA on Monday after spending the holidays with Liam. She had the time of her life being with him and his family," the source told E! News.

"She feels like they could pick up right where they left off. Miley has never gotten over Liam and always hoped they would get back together. She doesn't know where it will go, but she definitely still loves him and wants to be with him. Liam has an interest in being back together too," the source added.

The pair began dating after they met on the set of their film “The Last Song” and were engaged to get married before they broke up more than a year ago. However, they were still in touch with each other even after the incident. Liam also visited Miley when she was hospitalised because of some allergic reaction to antibiotics. Above, see the couple's best moments in pictures, from their past.