"She's always loved going to basketball games and knew people in his circle," a source told E! News of Vanessa's outing to Kyle's game on Wednesday night.
"They totally hit it off and are having a lot of fun, but it's nothing serious," the insider spilled.
"She's enjoying his company and it's a great distraction for her right now. They talk often and have plans to see each other again, but she doesn't want to date him."
Hmm, it kinda looked like dating to us!
"She hasn't been single in almost a decade so she is enjoying this new chapter," added the source – who was backed up by another loose-lipped insider, who said the High School Musical alum, 31, is just having some fun for now.
"She's getting to know Kyle and so far she likes what she sees. He's treating her very well and is a big flirt. It's exciting and new."
It looks as if Los Angeles local Vanessa – who's long been a massive Lakers fan – may have been chatting to 24-year-old Kyle online for some time.
The pair have been liking each other's Insta posts and dropping cute comments on each other's snaps for weeks, leading to speculation there could be more going on than "just fun".
Hearts broke around the world when an insider confirmed to Us Weekly that Vanessa and Austin had split in late 2019.
"Vanessa and Austin are officially broken up, and Vanessa has been telling those close to her about their breakup," the source close to the actors spilled.
Another insider has revealed that conflicting schedules finally came between the pair, who have both been filming in different parts of the world.
While Vanessa was overseas filming her new movie, The Princess Switch 2, over the past few months, Austin has been in The States working on Baz Luhrmann's upcoming Elvis Presley biopic.
"They're just shooting on two different continents and it's a matter of distance," a source told E! News. "There is no bad blood at all, and they have a lot of respect for each other."
Though Hudgens and Butler "are split for now" they're "going to see what happens," a second source told the outlet.
"They have such a history and deep connection they could find their way back to one another."