Demi Lovato "couldn't stop smiling" as she danced with Wilmer Valderrama on Wednesday night.

Demi and Wilmer were rumoured to have split earlier this month after the songstress posted a Twitter message about not needing a man.

Despite speculation, the pair were spotted having a great night out at Hollywood disco Beacher's Madhouse this week.

"Right after Wilmer arrived, he made sure to say hi to Demi, who was sitting with Kim Kardashian," an eyewitness told Life & Style magazine. "He kissed both of them on the cheek, and Demi couldn't stop smiling. He kept making her laugh."

Demi and Wilmer were incredibly tactile with their affection throughout the night.

"Around 2am, Demi grabbed Wilmer and hugged him," the source continued. "She kept her arms around him as they chatted with a friend. They definitely didn't seem to be over each another!"

When the pair were not embracing, they were dancing.

"They danced together to 50 Cent's In Da Club and she kept her arms around him the whole time," the eyewitness added. "They were facing each other, mouthing the lyrics to one another, and looked to be having a great time."

Demi and Wilmer have been dating off-and-on since 2010.