Taking some much-earned time off following the release of “Inception,” Leonardo DiCaprio was spotted living it up with Bar Refaeli in Sardinia, Italy on Sunday night (August 8).

Making their way to a local nightclub, the beautiful couple joined up with supermodel Naomi Campbell and her man, Vladimir Doronin, in helping to celebrate the birthday of Fawaz Gruosi, founder and president of de Grisogono jewelry.

The outing comes amidst growing rumors that DiCaprio is close to proposing to his Israeli model girlfriend.

A source told the UK’s Daily Star, “He is finally ready to settle down and make it official. Leo has told his closest friend that his mother has been helping him pick out an engagement ring for Bar.”

Continuing on, the Daily Star insider adds, “He’s asked her to move in with him. Bar doesn’t mind spending the night at his bachelor pad, but she isn’t comfortable living there all the time.”