The supermodel was on the decks at Annabel’s nightclub when, according to reports, the former Spice Girl got a little too close for comfort.
The Mirror reports that Mel and her husband Stephen Belafonte were dancing in the DJ booth when Kate “nudged” Mel out of the way, before giving the middle finger to the ‘X Factor’ judge.
“They’d been sat together all night and seemed to be in great spirits so it was quite shocking to see.”
However a source close to Mel has rubbished rumours of any rift between the pair.
“There was no bad blood between them – they called each other the next day and had a chat. Mel wasn’t even upset.
“It probably looked worse than it was.”
Earlier in the evening, Kate was sat next to One Direction’s Harry Styles, and the pair puckered up to greet each other.
While Kate usually remains pretty quiet in public, earlier this week, Cara Delevingne revealed that the supermodel gave her some useful advice when they worked together, stating that Kate told her "not to give a s***" what anyone thinks.