The two actors previously worked together on the HBO series Hung
The actress, 49, and the actor, 50, were spotted attending a Tribeca Film Festival event for the film Crown Vic, which Jane stars in alongside Bridget Moynahan, David Krumholtz and Josh Hopkins.
A source tells PEOPLE “they arrived at the afterparty holding hands.”
Another source says, “They have been friends for more than 20 years and really enjoy spending time with each other.”
The two attended the Sarasota Film Festival in Florida last month where Heche was honored with a Career Tribute Award.
Jane and Heche previously worked together on the HBO series Hung, where they played a divorced couple. Jane starred as Ray Drecker, a struggling single father who resorts to prostitution to make ends meet. The series ran from 2009 to 2011.
The actors are reuniting on screen for their upcoming thriller film Hour of Lead, which follows the story of a husband and wife who will stop at nothing to find their missing daughter.
Heche was previously with actor James Tupper, who she began dating in 2007. They split in January 2018 after more than 10 years together. They have one son together, Atlas, 10.
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“James and I have shared a great life together and have many wonderful memories. We’ve enjoyed working together, most recently on The Brave, where he joins us for our two mind-bending finale episodes,” Heche and Tupper said in a joint statement. “Relationships change and grow; we’re taking time for that. We care very much for each other and plan to continue raising our two beautiful boys in love and harmony. Thank you for allowing us privacy as our family evolves.”
The actress was previously married to cameraman Coleman Laffoon, with whom she has a son, Homer, 17. Their divorce was finalized in 2009.
She also famously dated Ellen DeGeneres in 1997 but they split in August 2000.
Jane was also married to actress Aysha Hauer in 1989 before they divorced in 1995. He married actress Patricia Arquette in 2006, and the two have one daughter together, Harlow, 16.
Their divorce was finalized in 2011.