The 34-year-old former glamour model - who has been romantically linked with rugby player Gavin Henson since her split from fiance Leandro Penna in October - was among those in the audience watching Kieran Hayler, 25, at a ladies night in Worthing, West Sussex, South England, raising money for a disabled children`s charity, and the pair reportedly couldn`t keep their hands off one another.
A source told The Sun newspaper: "They were kissing and cuddling and seriously wrapped round each other."
Kieran - who has performed his act several times on UK TV soap `EastEnders` and also appeared on panel show `Argumental` - later posted a picture of them kissing online, and said: "I couldn`t be happier in my life right now!"
On Tuesday (18.12.12), Kieran accompanied Katie - who has children Harvey, 10, Junior, seven, and Princess, five, from previous relationships - on a shopping trip to the Bluewater centre in Kent, South East England.
He tweeted a picture of them kissing afterwards with the message: "Had fun with my baby girl Miss KatiePrice."
However, friends of twice-married Katie insist she is not looking for a serious relationship at the moment and just wants to have some fun.
A source said: "She`s just come out of a serious relationship. She`s taking things easy at the moment."
Katie sent her ex-husband Peter Andre a message of condolences this week following the death of his brother Andrew from kidney cancer.
She wrote on her Twitter page: "My thoughts are with the Andre family at this difficult time xx."