Both Sheridan, 42, and Bolton, 53, had avoided discussing the "huge rock" she was seen wearing at a pre-Oscar party earlier this month, People magazine reported.
But a representative for the couple Tuesday confirmed they have rekindled their love and a wedding is in the future, People said.
Sheridan married "L.A. Law" star Harry Hamlin in 1991 and the union lasted about a year. Bolton was married to Maureen McGuire for 15 years and they have three daughters. The couple split in 1990.