UPI Photo/Rune Hellestad /Landov
May 11, 2007 10:20 AM

When photos surfaced of Kylie Minogue and filmmaker Alexander Dahm having dinner, cocktails and a boat ride in Chile this week, the British press quickly speculated that they were having an affair.

But Minogue, 38, said Friday that she and Dahm, 39 – who is married and whose wife is eight months pregnant – were merely chatting about a “potential film project.”

“I have never been unfaithful to a partner and would find it immoral to be involved with a married man,” she said in a statement.

A rep for the singer said she is currently on her way to the U.S. for further meetings about upcoming projects.

In a message posted on her Web site on Wednesday, Minogue wrote that she was in South America learning to tango, and said the film project was a “new musical film which has been in the pipeline for some time.”

Minogue dated French actor Olivier Martinez, 41, for four years before they split in February.

Dahm and Minogue having dinner in Chile on May 7

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