Jake Gyllenhaal thinks Rachel McAdams is the ''complete package''.

The 'Brokeback Mountain' actor recently fuelled rumours he is dating the 35-year-old actress - with whom he is currently filming 'Southpaw' - after they were spotted out together on a number of occasions, and friends say they were instantly attracted to each other.

A source said: ''There is no denying the electric chemistry between Jake and Rachel. The attraction was instant. From the moment they started working together, Jake and Rachel just connected intellectually and emotionally.

''For Jake, Rachel is the complete package. She's incredibly smart and well versed in arts, politics and culture, but she's not a show-off. Of course, it helps that she's gorgeous.''

However, the duo are hesitant about taking their romance to the next level because Jake, 33, has had an on/off relationship with model Alyssa Miller since last summer, and Rachel is dating music manager Patrick Sambrook.

The insider told OK! magazine: ''They are tip-toeing around the issue, but with them hanging out with each other all the time, the situation is bound to come to a head.

''For the time being, Rachel and Jake are in the flirting stages.''