Sex Tape star, Cameron Diaz arrived at Academy's Hollywood Costume luncheon on Wednesday smiling and sporting a new sparkling ring which made the guests wonder and asked, is she and her boyfriend Benji Madden engage?

Diaz, 42 years old had a seat at a table with Iron Man star Gwyneth Paltrow during the luncheon in Los Angeles, California. According to an eyewitness, she was seen happy and constantly twirling her ponytail which made her show off her new sparkling ring and she often seen playing with it.

According to the source, Diaz and Madden was spotted having dinner with friends at Madeo, an Italian hot spot in Beverly Hills and she was also seen wearing the new ring, she was showing it off and smiling. The couple enjoyed their dinner that lasted for several hours.

Another source stated that the couple took their relationship to the next level after they spend their time in Florida with Diaz's family. It also appears that Madden, 35 years old also moved in with Diaz in her house at Beverly Hills, California.

Diaz seems so happy with her relationship with Madden because since the two had started dating, Diaz has changed a lot in a positive way. She was always smiling and looks happier. Madden and Diaz has been living together for months now and they are acting like they can't get enough of each other and they always spend time together. They are seen working out together and stating at home and cook.

According to the source, the couple also talked about marriage.

Diaz really looks like she is really in love, she is always happy and the relationship they have are deep and she wants people to know about it.

Diaz is not the only one happy on their relationship; Madden is equally happy and loves to talk about their relationship. When he was asked about their relationship, he said that he was really happy about it.