Ellie Goulding, Ed Sheeran Hold Hands at the 2013 MTV VMAs

Ed Sheeran, Ellie Goulding and Rita Ora at the MTV Video Music Awards
Ed Sheeran and Ellie Goulding (pictured with Rita Ora) were spotted holding hands during the MTV VMAs on Aug. 25 Jeff Kravitz/FilmMagic

Caught in the act! Ellie Goulding and Ed Sheeran set tongues wagging on Sunday, Aug. 25, when they were spotted indulging in a little private display of affection at the MTV Video Music Awards in New York City.

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Sitting next to each other in the audience at Brooklyn's Barclays Center, the "Anything Could Happen" singer, 26, and the "Everything Has Changed" crooner, 22, were seen holding hands during the show. At one point in the night, Sheeran even had his hand on Goulding's knee.

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Goulding, however, dismissed the idea that she and Sheeran were anything other than just good pals. "I love that holding hands with my friends means we're an item," she tweeted after the show. "In that case I am in many relationships. Lover not a hater. #whatthef*ck."

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Sheeran isn't the only British musician who has been linked to the "I Need Your Love" chart-topper in recent weeks. Goulding, who has dated producer Skillrex, was also rumored to be seeing One Direction boy bander Niall Horan. (She and Horan, 19, sat together during the show, too.) However, she laughed off the romance in an interview with the U.K.'s The Mirror.

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"Oh God, I knew this was coming!" the paper quotes her as saying. "I just can't talk about Niall. I won't ever talk about my love life anymore because it's always then gone wrong when I have in the past."

In fact, a source tells Us Weekly she's still with actor Jeremy Irvine and is not interested in either Horan or Sheeran.

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