The Love Story actor, whose long-term partner Farrah Fawcett died from cancer last year, is believed to be dating model Cheryl Tiegs.
Hollywood socialite Nikki Haskell, who saw the new couple at a recent party, told the National Enquirer: "They spent most of the night sitting very close together on the terrace, talking."
A source at another event, who spotted O'Neal and Tiegs, said: "It was clear that they were very happy together".
