The model and actress - who split with the rugby star in August after she discovered he'd been sexting a string of women - was seen with her ex in two different venues in London.
They both joined a group of friends at Kelly's new bar, Steam & Rye, before heading to The Rose Club together.
“They’ve been back on speaking terms for a few weeks.
“Kelly has been dating Dave Gardner, but she can’t make a clean break from Danny.
“He hurt her but she still thinks he’s the love of her life and that they can work it out. It could be the start of them getting back into a relationship.”
This wouldn't be the first time that Kelly has rekindled her relationship with Danny.
They first split in June 2010 and then got back together in January following Kelly's split with rugby star Thom Evans.
But they went their separate ways again in August after Kelly discovered Danny had been sending naked pics and x-rated texts to other women.
She was recently linked to US actor Jeremy Piven after the pair were spotted at the 'Mr.Selfridge' star's Malibu home.