Sources told the mag that Cyrus gave Lutz a hug and a kiss on the cheek.
A witness told People that the rumored twosome kept their distance at first before reuniting at the end of the night.
"They talked a very close range for a long time while Miley was laughing and rubbing his back," the source said. "At one point she kissed his ear."
"They left in the same large group, but Kellan was a few steps behind her the whole time," the source added. "Most of the people chasing after Miley didn't even notice him right behind her. He did a pretty good job of blending in."
The romance rumors started when Cyrus and Lutz shared a private plane to Miami several days before Christmas.