The 'AM to PM' singer sparked rumours of new romance earlier this week when she was pictured holding hands with the heavily tattooed rapper, and friends say they have been getting on very well together.
A source told Us Weekly magazine: ''It is totally true. They are hooking up.''
Milian, 32, and Wayne, 31, looked very cosy as they attended the 2014 ESPY Awards in Los Angeles on Wednesday, July 16, sitting next to each other at the event and sharing plenty of jokes.
Christina is newly single after splitting from fiance Jas Prince just over a month ago.
At the time she wrote on her Instagram page: ''There comes a time in life, when you walk away from all the drama and people who create it. Surround yourself with people who make you laugh, forget the bad, and focus on the good. Love the people who treat you right.
''Pray for the ones who don't. Life is too short to be anything but happy. Falling down is part of life, getting back up is living.''
Christina - who is signed to Wayne's Young Money record label - also has a daughter with producer The Dream.
Wayne was previously married to Antonia Wright between 2004 and 2006, with whom he has a daughter, Reginae, and he also has three other children who were all born to different mothers.
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