Singer Nick Jonas and actress Kate Hudson have fuelled dating rumours as they were spotted having a great time together in California.

Joined by some friends, Jonas and Hudson were seen visiting a Starbucks outlet in Mammoth Lakes, California on Monday.

The "Bride Wars" actress looked delighted as she was all smiles while seemingly performing some dance moves, reports tmz.com.

"Kate was dancing around and laughing. She was very giddy and in great spirits. They were laughing a lot and (were) very flirty. Nick picked up the tab for everybody's coffee," an insider said.

Another source claimed that Hudson's sense of humour managed to make Jonas singer laugh.

"She makes him laugh. They have fun together," said the source.

The duo first sparked romance rumours back in September 2015, when they were photographed having a trip together to Disney World in Orlando.