Mariah Carey is rumored to be dating Australian billionaire James Packer and a recent citing in Italy helped fuel those rumors.

Carey is on vacation with her kids, twins with Nick Cannon; Monroe and Moroccan, but she managed to find time to go out on a date with Packer. The family of three is also staying on his yacht.

Packer and Carey were seen having dinner at Aurora restaurant in Capri, where the singer usually dines when she’s in town.

“They seemed very happy, relaxed, at ease in each other's company," a source told E! News. "She looked beautiful in her red dress."

They were seen walking together holding hands on Friday during their date, TMZ reports.

Packer is reportedly worth an estimated $4.6 billion, the fourth richest man in Australia.

On Sunday, Carey wished Cannon a Happy Father's Day by posting a photo of their kids' artwork for him. "Happy Father's Day @nickcannon!! Love, Roc & Roe," she wrote.

image via Instagram from Mariah Carey

image via INFphoto.com