Despite stepping out together in public at the weekend, *Hilary Duff *is "still separated" from *Mike Comrie *.
The former couple, left, who announced their split in January, sparked speculation they had reconciled after being spotted shopping and partying at the Coachella Valley Music and Arts Festival together but they are reportedly just friends.
An insider told PEOPLE.com: "They are still separated but very good friends. They are at Coachella this weekend, which is sure to fan the flames, but they aren't a couple. It's just not true - they remain separated."
The duo, who have two-year-old son *Luca * together, said at the time of their split that they would "remain best friends and will continue to be in each other's lives".
Eyewitnesses previously claimed Duff, 26, was holding the former ice-hockey player's hand as they purchased a handbag for her in a Chanel store in Los Angeles last week before flying to Indio, California, for the music festival. However, a spokesperson for the former Disney star declined to comment.
Another source said the couple reunited during a romantic trip to the Bahamas in February.
"Hilary and Mike hooked up when they were in the Bahamas. Once they were together with their son Luca in the Caribbean, it got emotional and real. Mike broke down and begged Hilary for a second chance," the source said.
"They've been meeting for hook-ups ever since, and Hilary's softened and the two are moving forward to see if they can work it out."