The 23-year-old "Dangerous Woman" hitmaker is "happy to be single," reported E! online.
"She broke up with him. He didn't cheat or anything, they just found it difficult to make it work. They are still friends though," a source said.
Grande and the 25-year-old backup dancer were first linked last summer, after they were seen making out.
The singer recently deleted all of her photos with Alvarez from her Instagram account.