Kate Hudson and Owen Wilson engaged?

Kate Hudson and Owen Wilson are engaged to be married, it has been claimed.

Hudson, 29, was snapped sporting a huge diamond engagement ring outside a Boston restaurant Thursday, fueling speculation the Hollywood stars are set to tie the knot.

Wedding Crashers star Owen, 39, reportedly proposed to Kate last week, and the pair are now set to wed in a lavish ceremony next year.

A source close to Hudson said: "Kate supported Owen during his low patch and that proved to him she's the woman he wants to be with for ever.

"He picked out the ring and went for the biggest one he could find. He was nervous about proposing but Kate was thrilled and the whole thing was really emotional."

The pair started dating in 2006 after filming You, Me And Dupree together. However, they split in May 2007; and shortly after Owen, unable to cope with the break-up, attempted suicide; he allegedly slashed his wrists and took an overdose of pills. The pair only recently got back together.

The source added to the News of The World: "The engagement is a natural step forward for them both and Kate's ecstatic."