It is only three months since he split from long-term girlfriend Chelsy Davy but Prince Harry appeared to be enjoying his single status when he was spotted with glamorous television host Caroline Flack outside a London flat late on Friday.
The Prince, dressed fashionably in a tight-fitting white T-shirt and beanie-style hat, smiled as he joked with the 27-year-old presenter.
Miss Flack, best known as the host of Sky TV show Gladiators, has known the Prince for a year.
However, the link between the two has not been made public until now.
They were introduced by mutual friend Natalie Pinkham, who the Prince was famously pictured groping in a nightclub several years ago.
Harry and Miss Flack were spotted emerging from a Â£500,000 basement flat in Fulham, West London, shortly before midnight after socialising with friends for more than three hours.
An onlooker said: â€˜They were having a great time and you could hear music, laughter and the clinking of glasses coming from within.
â€˜Harry and Caroline were clearly getting along very well, they were laughing and joking and their body language showed they were relaxed in each otherâ€™s company.â€™
A spokeswoman for Miss Flack, who is single, said last night: â€˜There is no romantic link between them â€“ they are just friends. I believe the group went on somewhere else but Iâ€™m not sure where.â€™
Miss Flackâ€™s big TV break was as a co-presenter on BBC2â€™s Saturday morning childrenâ€™s show TMI. Other roles include hosting Big Brotherâ€™s Big Mouth, an offshoot
of the reality TV show on which Russell Brand made his name.
Last night a Clarence House spokesman declined to comment.