It looks like Iggy Azalea is ready to move on after ending her engagement to basketball player Nick Young last month. On Saturday (July 23) Iggy was spotted hanging out with rapper, and ex of Khloe Kardashian, French Montana, sparking rumours that the two could soon be an item.

Iggy AzaleaIggy Azalea has been spotted out with rapper French Montana.

Iggy and French both attended Jennifer Lopez's All I Have residency show at Caesar's Palace, before heading to Jewel Nightclub where Iggy was scheduled to perform. An onlooker told US Weekly that the pair looked to have “good chemistry.”

More: Iggy Azalea Has A Non-verbal Message For Nick Young And Keonna Green

"At multiple points, he leaned in to her and swiped his hand across her lower back and shoulder,” they told the magazine. "[They] hung out for a few minutes, laughing, dancing and throwing their hands in the air.”

French also watched Iggy perform hits including ‘Fancy’ and ‘Black Widow’. "He was bobbing around during her performance watching the crowd," the onlooker added. The pair are then said to have left together at around 2:30 a.m.

Earlier in the night Iggy told reporters on the red carpet not to expect her new album Digital Distortion to address her split from Nick Young. "My album has already been recorded," she said. ”It's been finished since February, so none of that in there."

More: Nick Young's Ex Keonna Green Responds To His Break-up With Iggy Azalea

Iggy ended the couple’s engagement last month and went on to accuse him of cheating on her in their home. It was then later revealed that Young’s ex-girlfriend Keonna Green is now pregnant with the basketball player’s second child. Young and Green are already parents to four-year-old son Nick Jr.