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Heath Ledger and Mary-Kate Olsen had become close before the actor's death on Tuesday.
'Mary-Kate and Heath were casually dating for three months before Heath's death,' a source tells People.com.
'They were hooking up, but neither were particularly interested in making it exclusive.'
Mary-Kate, 21, and Heath, 28, first met in the summer of 2006 and their love of fun nights out is said to have drawn them together. They were often spotted on the New York party scene.
'They had a bond that was based on partying, and they had the same tastes in partying … like in terms of where they liked to hang out in New York, what time they would want to go out,' adds the source.
'They just had the same sensibility.'
Mary-Kate says in a statement: 'Heath was a friend. His death is a tragic loss. My thoughts are with his family during this very difficult time.'
Meanwhile Diane Wolozin – the masseuse who found the actor's body and called Mary-Kate for advice on what to do – admits she's still shaken up.
'I am really stressed-out. I cannot sleep. It is just awful,' she says.
An autopsy carried out on Heath's body on Wednesday to determine cause of death proved 'inconclusive'.
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