James Packer, 46, and his wife Erica Baxter, with whom he has three children, have separated in September after six year of marriage.
The two Australians have known each other for years and are rumored to have spent the holidays together recently in Tahiti, according to Woman’s Day.
But a source denied to E! News the existence of a romance between Kerr and Packer, saying that there is “no truth to this.”
So far no rep has confirmed or denied the news.