The 26-year-old "Black Widow" singer and the "Lockjaw" rapper, 31, "are very much a couple," reported Us magazine.
"They've been all over each other," a source said.
Azalea and Montana have been indulging in a lot of PDA ever since they left for Cabo San Lucas, Mexico, via a private jet on Saturday, August 27.
Azalea first ignited rumors of a fling with Montana after they were spotted getting cozy in Las Vegas following one of Jennifer Lopez's concerts this past July.
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