A source said: "They're hooking up but they're keeping it low-key."
The two were recently spotted dining at Koi restaurant in LA and partying together at hotspot Voyeur.
A source told E! Online: "You can tell they're into each other and both like to have a good time. They're cute together."
Lavigne filed for divorce from her husband after being married for three years and Brody recently split from his Playboy playmate girlfriend Jayde Nicole.
Do you guys think they make a cute couple?