Celebrity Naomi Watts Dating Her 'Gypsy' Costar Billy Crudup As They Take a Stroll in New York City The couple was spotted over the weekend holding hands in New York City By Daniel Goldblatt Published on July 18, 2017 01:30 PM Share Tweet Pin Email Photo: The Image Direct Love is in the air on Netflix. Naomi Watts and Billy Crudup, who star as husband and wife on the series Gypsy, are now dating in real life, a source confirms to PEOPLE. The pair was spotted holding hands in New York City over the weekend, according to Page Six, which was first to break the news of the new couple. An eyewitness told the outlet they spotted Watts, 48, and Crudup, 49, holding hands as they walked into a cafe for lunch. The witness said they “looked happy and were laughing a lot, then left again holding hands.” The two had previously been seen taking a stroll together back in March as they bundled up in the cold New York weather. The costars were all smiles as they headed to a sushi spot for lunch. The Image Direct RELATED VIDEO: Naomi Watts Says She Had a “Psychic Premonition” She’d Be the Mother of Boys Watts was previously in an 11-year relationship with Liev Schreiber, which came to an end last year. The couple has two children together: Samuel Kai, 8, and Alexander “Sasha” Pete, 10. She recently opened up about the split in an interview with Vogue Australia, saying that her relationship with Schreiber, 49, has continued to remain amicable. “There are good days and bad days and Liev and I are on great terms and we’re trying to do our absolute best for the sake of the children and we hope to keep moving forward in that way,” she said. Crudup dated actress Mary-Louise Parker until 2003, when he left her (six months pregnant with their child) for actress Claire Danes. Crudup and Daines dated for four years before splitting in 2006.