(Cover) - EN Showbiz - Rachel McAdams and Michael Sheen have reportedly moved in together.

The two stars began dating last summer after meeting while shooting Woody Allen's new movie Midnight in Paris. They were spotted together many times towards the end of last year and finally confirmed their romance by gracing the red carpet at the Cannes International Film Festival in May.

It's now been claimed the relationship is hotting up, with the pair already sharing a home.

"Rachel and Michael are now living together, even though it's often out of a suitcase because they both travel so much," a source told National Enquirer. "Michael has settled into her place in Toronto, Canada and most of his stuff is there."

Michael has 12-year-old daughter Lily with his ex-partner Kate Beckinsale, who he dated for nine years. Rachel has met Lily and they get along famously, much to the 42-year-old actor's delight.

There have been rumours the couple are considering tying the knot, after Rachel was spotted wearing what looked like an engagement ring, and those close to the pair hope he'll pop the question soon.

"Rachel and Lily get along great, and that's incredibly important to Michael," the insider added. "All of their friends believe it's the real thing for both of them." (C) Cover Media