The scene took place at a Scottish posh hotel.
According to the Daily Mail, Warne is believed to have proposed to Hurley in the restaurant of the exclusive Old Course Hotel in St Andrews, after the two enjoyed a romantic dinner together.
“Shane proposed over dinner and it was fairly public, not a private affair,” a witness told the British tabloid.
“It was a VIP crowd in there this evening. It was residents only, including Dunhill past players.”
“He didn’t get down on one knee, but when it was announced the other guests in the restaurant stood up and applauded. Everyone there was absolutely delighted.”
The couple has been dating since December 2010. They met at a horse race held in July 2010, in West Sussex county.
Liz Hurley divorced Indian businessman Arun Nayar in June and Warne ended his ten-year marriage to wife Simone in 2006.