Bieber, 23, joined Gomez, 25, for a New Year’s celebration in Cabo San Lucas, Mexico, a source tells PEOPLE.
“Justin and Selena are doing great. They celebrated New Year’s Eve together in Cabo,” says the source.
Gomez arrived in Cabo earlier in the week with a group of friends.
Bieber also hinted that he was in a tropical location with social media posts over the weekend. He posed nearly-shirtless with two male friends for a snap shared to his Instagram Story on Sunday.
She was first spotted spending time with the “What Do You Mean?” singer that same month, going on a bike ride and attending church together. The former flames have continued to fuel reconciliation rumors since then, even sharing a smooch at Beiber’s hockey games.
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Multiple sources previously told PEOPLE Gomez’s family was concerned about the on-again romance and that Bieber was determined to show her loved ones he had matured.
“It’s, of course, a bit frustrating that Selena’s family is still not happy about their relationship,” added the source. “Hopefully this will change in the new year.”