And they also reportedly enjoyed drinks together at a London hotel where they were seen "kissing in front of lots of people".
However, a source close to Smith claims they are just friends.
The insider told Metro.co.uk: "Sam and Tay are just very good friends, that's all. Sam and TayTay were out with a whole posse of people, including Sam's band members. They were just having a fun night out."
Smith previously admitted he had never had a proper romance with another man until 2014 but insisted he doesn't ever mind being single because he feels "comfortable" alone.
He said: "I was in a relationship for a few months before Christmas, but I really have an issue with relationships.
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"In fact, I have never really had a relationship up to [the end of 2014]. I am just very comfortable and happy alone."
Meanwhile, Starhz hit the headlines when he was spotted kissing married TV presenter Zoe Ball, wife of Fatboy Slim DJ Norman Cook, in a London club last year.
- Bang! Showbiz