The `Fashion Police` star`s boyfriend Matthew Mosshart popped the question a few weeks before Christmas and now the couple - who have been dating for around 18 months - are "really excited" about planning their nuptials.
A friend added to Us Weekly magazine: "Kelly is the happiest she`s ever been. Her career is going well, and she`s in a healthy relationship with a wonderful guy."
The wedding is set to take place in Kelly`s native UK this summer.
Kelly and Matthew met at the nuptials of Kate Moss and Jamie Hince in July 2011 but didn`t go public with their romance until five months later.
Kelly recently spoke about her love for Matthew and said he made her realise what real love is.
She said: "I couldn`t believe that he truly liked me because I never think people ever could. But I`m so happy. I don`t think I`ve ever really known what love is like before."
And it`s not just Kelly who`s impressed with the vegan baker - he`s a big hit with her parents, Ozzy and Sharon.
A source said: "Kelly`s family love her boyfriend.
"They think he`s the nicest guy she`s ever dated. He is very patient and down to earth."