Rumours have been swirling that they have been dating on the sly for the past month.

Now, Cameron Diaz, 41, and Benji Madden, 35, have finally confirmed that they are indeed in a relationship.

The pair stepped out together holding hands for the first time as they enjoyed a casual stroll in New York City on Tuesday.

The couple appear already to be comfortable around each other, judging by their low-key garb and relaxed demeanors. 

Cameron displayed her slender legs in black leggings paired with a loose-fitting white top and grey suede booties.

She wore her blonde hair pulled back in a bun and shielded her eyes with black sunglasses.