After Kate Hudson was seen wearing a diamond on her ring finger, reports of an engagement to Owen Wilson surfaced.

But the 29-year-old actress has denied the rumours that she and her on-off boyfriend have taken the next step in their relationship.

The couple met on the set of the film 'You, Me and Dupree' in 2006 and were linked later that year after Hudson split from her husband.

Wilson and the 'Fool's Gold' actress separated in June 2007. After Wilson's suicide attempt two months later the pair gradually rekindled their relationship, spending time together in Miami where the 'Wedding Crashers' star is currently working on a film.

But despite Hudson being seen with the diamond ring on Thursday, her spokesperson has told Us Magazine: "She's definitely not engaged. She's shooting a movie called 'Bride Wars', which explains the ring."