The Mysterious Girl singer, 37, who suffered a bitter divorce from ex-wife Katie Price in 2009, was spotted on a date with the 38-year-old Spanish model earlier this week.
They enjoyed a performance of West End show Flashdance before tucking in to a meal at Claridge’s Hotel.
A spokesperson for one of the pair told The Daily Star: “Yes, Peter and Elen are dating. It is early days but this is not just a date, they are in a relationship and have been for a couple of months.”
They reportedly met through mutual friends in November and even spent Christmas together.
Peter reportedly gushed to friends: “She is so classy and beautiful, just the change I needed after everything that has happened in the past two years.”
Elen, who is due to appear in ITV’s Dancing On Ice later this month, split with footballer Frank Lampard in 2008 after six years together. The pair have two daughters, Luna and Isla.
She has spoken of her desire to start another relationship, saying: “I want to find a man and get married. I miss having a man in every way.”
Peter, who has been single ever since his split with Katie, has also made no secret of the fact he hopes to find his dream woman.
He recently said on his ITV2 show: “I want to be in that family unit again and have more children and be in love again.”