Singer Kylie Minogue has fuelled rumours she is engaged to her boyfriend of four months, Joshua Sasse, after she was spotted with a huge diamond sparkler on her ring finger.

The "Spinning around" hitmaker was spotted with the sparkler on her left hand as she dined at the Chiltern Firehouse here with Sasse following their romantic two-week holiday in Geneva.

"Kylie was smiling from ear to ear and was more than happy to flaunt her diamond ring. It was like she wanted the world to know," a source was quoted as saying by The Sun newspaper.

"The couple recently spent the whole festive period skiing and hired a lodge for friends and family. It would have made a very romantic place for a proposal," the source added.

The insider also said that Sasse was "ready to propose after finding the woman of his dreams."

Meanwhile, the 47-year-old singer previously revealed she'd like to have children with the 28-year-old actor one day.

"I have a love in my life, which is a beautiful thing. I'm on Cloud 9 most of the time because of Mr Joshua Sasse, my beau. I want to go a bit slower and look at the view," she had said.