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Actress-designer Nicole Richie is "so excited" that her brother-in-law Benji Madden is reportedly dating Hollywood A-lister Cameron Diaz.

Richie, who is married to Benji's twin brother, Joel Madden, recently played matchmaker and set `The Other Woman` star up on a date with her brother-in-law, and is thrilled it went pretty well, reports contactmusic.com.

"'Nicole initiated the whole thing by inviting both of them over to her house. She knew they would get along,` said a source.

"She's so excited that things are working out between them. And it's and added bonus that she doesn't have to deal with getting to know another one of Benji's new girlfriends,` the source added.