The 25-year-old star announced her split from husband Paul McDonald last month after two years of marriage. She has been spotted with Hough since then, reported Us Weekly.
Reed and Hough, 28, were most recently seen getting cozy in LA on April 18. The duo were joined by Hough's Dancing With The Stars best friend Mark Ballas and costar Cheryl Burke.
"The whole group was drinking and partying. Derek bought shots for Nikki at the bar," an eyewitness told the magazine.
"There was lots of PDA, Nikki was feeding him, holding hands, and they left together. They didn't seem to care if anyone was watching.