Cameron Diaz and Benji Madden faced with engagement rumors

A few months after meeting musician Benji Madden, Cameron Diaz might be ready to say goodbye to her bachelorette days.

According to People, the 42-year-old actress was seen at the Academy’s Hollywood Costume luncheon on Wednesday with a sparkling ring on her finger.

During the event Cameron was “casually and constantly twirling her ponytail, showing off the ring and often playing with it,” an eyewitness told the publication.

The pair was also spotted at Italian hot spot Madeo, in Beverly Hills, where Diaz proudly flashed her sparkler.

“They arrived together with Benji driving. Cameron showed off her new ring and was smiling,” a source says. “They enjoyed dinner for several hours.”

The magazine writes that Madden, 35, has apparently moved in with the actress in her Beverly Hills house.

“Since she started dating Benji, Cameron has changed in a very positive way. She can’t stop smiling and seems much happier,” a source told the mag. “Benji has lived with Cameron for the past couple of months. They act like they can’t get enough of each other and spend a lot of time together. During the days, they often share a workout. At night, they often stay at home and cook.”

“For a girl who was happy being single, Cameron seems to have fallen in love,” another source added. “She is really happy. The relationship is deep and she wants people to know it.”