Holland was spotted cuddling with Olivia and holding hands with her at the British Summer Time festival in photos obtained by The Sun.
The star has been ‘smitten’ with Londoner Olivia – who works in digital production – for months, after they met through their parents.
“Tom’s been dogged with rumours about who he’s dating so finally being public with Olivia has been a massive relief for him.”
The source added that the pair’s parents have given their ‘relationship’ the seal of approval.
“All their friends and family think they make a lovely couple. He is totally smitten,” the source claimed.
Holland’s rumoured new love has no doubt left fans devastated, who’ve long been rooting for him and Zendaya to get together.
Zendaya is his co-star in Spider-Man movie and they have been rumoured to be dating.
The actor put a stop to the dating rumours once and for all back in June – telling Elle that he is not currently dating anyone. However, he said he was still a “relationship person”, admitting: “I’m not the fleeting type at all; it’s not my way of life.”