Splash News Online
Marla Lehner
May 23, 2011 12:55 PM

The Cannes Film Festival is over, but Leonardo DiCaprio and Blake Lively continued to hang out together in Europe.

The pair, who were spotted hugging on a yacht on the French Riviera during the festival last week, were seen again looking friendly in Portofino, Italy, on Sunday.

Lively, 23, and the newly single DiCaprio, 36 – both wearing hats and sunglasses – went sightseeing and “seemed happy in each other’s company,” according to an observer. They were “laughing and walking” together.

PHOTOS: Stars Féte the Cannes Film Festival

No word on whether the outing was just for fun or had a business element to it. Last November, the two stepped out for dinner at The Lion in New York City, where they were reportedly talking about a movie project.

DiCaprio and model Bar Refaeli confirmed their break-up earlier this month, while Lively split from her boyfriend, Penn Badgley, last year.

Reps for both DiCaprio and Lively had no comment.

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