James Franco and Ashley Benson. (Reuters/WENN.COM file photo)

Hollywood hunk James Franco is reportedly dating Pretty Little Liars star Ashley Benson.

The actor first sparked rumours of a budding relationship with Benson after the couple was spotted on a romantic walk through Washington Square Park in New York City earlier this month.

The speculation was then fuelled last week after the pair held hands while enjoying the spooky Halloween attraction Haunted Hayride in Los Angeles.

A source tells New York Post gossip column Page Six, "They have been seeing each other for a little over a month, but things are going well."