The 28-year-old singer was spotted with Carrozzini, son of Vogue Italia Editor-in-chief Franca in Portofino, reported Us magazine.
Photographs show them walking side-by-side and cuddling on a bench.
The two are seeing each other for about a month, a source said.
Reports of Rey breaking her engagement with Barrie-James O'Neill first surfaced in late June, when a paper quoted her as saying she and the Kassidy rocker were 'currently not together'.