The source continued, adding that his "intense filming schedule" means he would be paying for a house he wasn't living in, which "wasn't going to work for him".
Due to Covid-19 restrictions, Valladares would not be able to travel to Canada with him while he films.
Sources added that Efron is "secretly relieved about this turn of events as he feels she would be a distraction to him during the filming of the intense drama".
Friends of the actor were allegedly pointing out that "he was getting in too deep and spending too much time" with Vanessa shortly after they got together.
They were reportedly spending "24/7" together, which wasn't vibing with the Hollywood actor.
"He felt it was best to end this now," the insider added.
However, a separate insider spoke to PEOPLE about their split, claiming that "Zac broke things off with Vanessa. It just didn't feel right to him any more."
"Zac will still stay in Australia [before travelling to Canada]," they added.
"He just loves Australia so much. He is working and busy with several upcoming projects. He is happy, healthy and enjoying life."