They may have been spotted holding hands and dining out in Hollywood but it seems the pair are just good friends.
Perry, who broke up from former boyfriend Rob Ackroyd last month, fuelled rumours of a romance with musician John Mayor when they were spotted out together.
The couple, who reportedly enjoyed a short romance in 2009, were spotted getting close in Miami recently and having met up again in Los Angeles.
According to a Radar Online source, Mayer, who has previously dated Jessica Simpson and Jeniffer Aniston, is just 'good friends' with Perry.
"John suggested they should work together on some tracks and Katy is toying with the idea," said a source.
"She also knows that John has a soft-spot for her and she's using that to her advantage and loves the attention of being seen with good-looking guys."
Katy "has zero interest in getting together with him and even gave his earlier advances the brush off," the source added.
Katy Perry Dines Out WIth John Mayer....