'They are very serious and plan on spending the future together. There will be an engagement at some point, but they are not engaged now,' said the source.
'Megan needs her divorce to be finalized before she can fully move on. She is very happy though,' the insider dished to the magazine.
Her estranged husband Brian Austin Green announced their split last May and she finally filed for divorce the day before Thanksgiving.
Brian and Megan have been married since 2010 and are the proud parents of three sons - Noah, eight, Bodhi, seven, and Journey, four.
Having a ball: She has spent nearly a year in a relationship with blond rapper Machine Gun Kelly whom she was spotted with in Las Vegas last month