Reese Witherspoon steps out with new beau

Actress Reese Witherspoon has confirmed rumours that she is dating her current beau after they were spotted stepping out together hand-in-hand.

Witherspoon, 34, and CAA agent Jim Toth were spotted in Ojai, Calif., on March 22 where they celebrated her birthday.

"They looked very happy," the New York Daily News quoted a West coast source as saying.

The lovebirds were all smiles throughout the day, which started with a romantic lunch at a small Mexican restaurant and continued with a shopping spree.

The duo had sparked rumours of a fling in January, when they had a very "flirtatious" dinner at L.A. eatery Locanda Portofino, just weeks after the actress split with ex-boyfriend Jake Gyllenhaal.

Toth's firm represents Witherspoon, so the first rumours about their romance were hushed with the cover story that their meeting was simply a business dinner.

"People were surprised that she bounced back so quickly after dating Jake, but she really likes Jim. I think she was shocked to like someone again so quickly," a source close to Witherspoon said.

"Friends of hers are hoping this works out. He's a good guy and they're hoping this lasts," the source added.