The rumors of their link up surfaced, when they were shooting for Kaminey, then it was almost confirmed when, Shahid moved in to Priyanka's building.
Though both of them have maintained the "we are just friends" façade, Shahid's step to be closer to her proved otherwise. In time, the relationship and the rumors died with the occasional "are they both back together?"
So, the latest is that, Shahid had been on a lookout for a bigger apartment, he has apparently put it on hold, because he doesn't want to part ways with Priyanka.
If friendship was the case, then Priyanka and Shahid seem to be BFF's. Let's hope that with time this "deep" friendship turns into a relationship, and hopefully they will accept it and give the gossipmongers something to chat about.