The rumour mills started working overtime after Butler, whom she met at the launch of the Atlantis hotel in Dubai last year, was quoted as saying in a leading daily: "I don't mind getting married to an Indian girl. Too bad Priyanka already has a boyfriend".
Now, who that boyfriend is, remains to be known.
Though rumours of a romantic liaison between Shahid and Priyanka have been in the grapevine lately after their joint appearance at filmmaker Tarun Mansukhani's birthday party in Mumbai last week, neither has confirmed the development.
The two will be seen together in Vishal Bharadwaj's "Kaminay".
"Priyanka has always maintained silence on her private affairs. Till date, she has never gone public about her personal life and she will continue to do so, " a source close to the actress told.
Even when news of her affair with her "Love Story 2050" co-star Hurman was doing the rounds, Priyanka remained politically correct. While Hurman was very vocal about their relationship as well as their break-up, the supermodel-turned-actress chose not to speak about it.
Now, the news about the friendship between Priyanka and Butler, who is currently in Jaipur, is raising eyebrows.
But the source clarifies: "He (Butler) is in Jaipur with four of his friends as part of an India tour.
"He came to Jaipur and knew that Priyanka was shooting and staying at Shiv Vilas for her film 'What's Your Rashee?'.
So he came to the sets to meet her as they are good friends and to see what an Indian film shoot looks like. He also met all important people on the sets and was also introduced to Ashutosh (Gowariker) and Hurman. Priyanka and him are just friends only, " the source said.
Butler, who played the role of King Spartan in "300", has also been linked to former "Friends" star Jennifer Aniston, which he has denied.