(Cover) - EN Showbiz - Blake Lively and Penn Badgley are thought to have rekindled their romance.

The two stars had been dating for three years when they called time on their relationship last year. They met on the set of American television show Gossip Girl and are thought to have tried hard to make their break-up amicable.

Earlier this year it was reported the pair were considering giving things another shot after Blake released how much Penn meant to her.

It is now thought they are back together as they were spotted at the Coachella music event in California over the weekend. The pair were laughing and joking with each other, and were even seen holding hands in the VIP Rose Garden. The stars appeared relaxed and happy as they listened to music, sparking speculation they are dating again.

Following their split neither discusses their reasons for ending things, and they managed to stay so friendly many of their co-stars had no idea they werent together anymore.

Penn has admitted that conducting a romance in the public eye was hard, explaining the only way he could make it work was by keeping his personal life completely private. He knows many thought it must have been hard to work with someone he was romantically involved with, but he actually enjoyed the experience.

Some would say its a double-edged sword, but in our case, we manage to balance it well, he said. (C) Cover Media