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The pair were spotted trying to keep a low profile as they did some last minute Christmas shopping last week.
Are they back on? "They were never really 'off,'" a DiCaprio source tells Us Weekly in its new issue.
"It was always a distance thing," the source adds. "Leo was making a movie in Morocco [this year], and Bar had her modeling career."
Refaeli's mom, Zipi, said: "Bar is working all over the world.
Adds Dicaprio's pal: "It's a struggle to make a relationship like theirs work, but yes, they're together."
Last week, An eagle-eyed snapper spotted the 33-year-old 'Departed' star and the 22-year-old model as they went store to store buying gifts in Santa Monica, California.
Camera shy DiCaprio was wearing a baseball cap and a hoodie to disguise himself while Refaeli opted for a huge pair of sunglasses.
The pair were joined on their outing by a young girl dressed in a Manchester United soccer team training top.
DiCaprio walked with his arm around the teenager as they walked around a sports shop. "They were all in a good mood and hardly anybody noticed them on one of the busiest shopping days of the year," said an onlooker.
"They put in a lot of legwork going around the shops - ironically the only thing they left with was a calf and foot massager!"
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