Despite playing off that Bali trip as a coincidence, new photos have emerged showing the unlikely pair cuddling on the beach.
The images, published by New Idea, show Tracey and Sean with their arms around each other, looking very much like a couple in love.
"They looked relaxed and really happy to be together," an onlooker told the publication.
"They looked like they were in the giddy, early stages of love. In fact, they couldn’t keep their hands off each other, stopping frequently to kiss!"
Another source confirmed the pair are "practically living together."
"He spends a lot of time at her place with Tracey and her daughter Grace," they revealed.