Meg Ryan and John Mellencamp
Splash News Online
10/22/2014 AT 10:00 AM EDT
After apparently breaking off their three-year relationship in late August, Ryan, 52 and Mellencamp, 63, are rekindling their romance.
"They are back together and it's brand new," a source close to Mellencamp tells PEOPLE. "They're really happy about it."
The pair were seen looking comfortable and relaxed together in New York City on Oct. 15 as they strolled through Manhattan's SoHo neighborhood.
The news of their reunion isn't completely out of the blue – the Indiana-based musician recently made it clear that he still carries a torch for the When Harry Met Sally actress.
"She's an angel sent to me, and I'm very happy," he told the Today show on Sept. 25. "And, you know, nothing's over 'til it's over."
Just a day later, the rocker told the Associated Press: "I'm very happy with the time I've spent with Meg Ryan. She's a beautiful girl, and I know that I will never, ever, ever be with a funnier girl than her. Not gonna happen. I'm grateful for the three and a half years we've been together."
"Nothing's over," he said when asked if they might reunite. "I never say 'die' for anything. Do you ever quit on anything?"
The "Jack and Diane" crooner also mentioned that Ryan had taken a photograph that appeared on the musician's new album, Plain Spoken.
Another Mellencamp insider says the couple faced difficulties such as the distance between his home base in Indiana, and hers in New York City. "There were disagreements over style of life and logistical problems which clouded their relationship," the insider says. "But there is no doubt that he cares for her a great deal."
"They are a great couple," adds the Mellencamp source. "All their friends were hoping it would work out."
• Reporting by LINDA MARX and CHARLOTTE TRIGGS
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