Zac Efron, Vanessa Hudgens Didn't Break Up, Says Pal

Credit: Frank Micelotta/TCA 2009

Are Zac Efron and Vanessa Hudgens about to call it quits? No way, a source close to the couple tells Us.

The pal scoffs at a new National Enquirer story entitled "Zac and Vanessa Finished -- she just doesn't know it yet."

In fact, the couple are doing just fine, the source says, adding, "they spent months together up in Vancouver, where they are both filming movies."

"Things are going well with them," the source says. "They are happy."

Efron, 22, and Hudgens, 20, began dating in 2005 while filming the first High School Musical film.