Kym - who plays Michelle Connor in the ITV soap - fell for Matt just weeks after divorcing 'EastEnders' actor Jamie Lomas.
A source told The Sun: “It was just too much, too soon for her.
“She has feelings for Matt but she was worried about rushing into a relationship.
“Kym explained how she felt. Matt was disappointed but he understands the timing just isn’t right for her.
“For the moment, she wants to concentrate on work and her family.”
Despite it being the first time they'd been at the same event together since splitting in 2013, Kym took to Twitter to slam reports she was upset.
"Why do some papers feel the need to make things up?! Just to clarify I had THE best night last night! Any reports to the contrary are false," she tweeted.