A source close to the couple tells People magazine that recent rumors that the two were engaged are completely false. However, friends of the couple admit that they "wouldn't be surprised" if the two were to get engaged.
"But she's not engaged -- yet," the insider reiterated.
The Oscar winning actors went public with their relationship in January at Penn's annual Help Haiti Home gala. At the time, rumors that the two were an item had been going around for a while as they spent Christmas together, along with Theron's 2-year-old son, Jackson, in Penn's Hawaii home.
After Theron moved into Penn's home in February it was announced that the two are set to work together in the upcoming flick, The Last Face, where she will star opposite to Javier Bardem and Penn will direct.
2014: The Year in Fashion [PHOTOS]