Swift, 22, who recently split from Conor Kennedy, was first linked to the British hunk after they were spotted holding hands backstage at 'The X Factor' in Los Angeles last month, reported Examiner online.
Excited fans have shared the news of spotting the couple together in the Big Apple on Twitter.
Swift and Styles, 18, are here for a concert.
One user wrote, "Um I just saw Harry Styles and Taylor Swift walking together in Central Park." While another tweeted, "I just met Harry Styles and Talor (sic) Swift together in Central Park."
It is reported that Swift will sing a duet with Styles during the One Direction Madison Square Garden concert tonight.