The pair has sparked Internet rumors over the past few weeks with their constant twitter flirting. Demi is super-close with Trace's younger sister, Miley Cyrus, and there is a whopping four-year age difference between the two.

However, Demi told TWIST Magazine on Tuesday that there's nothing to the story.

"Trace is really one of my good friends," she confessed. "People don't realize that he is really, really cool. And he is one of my good friends. I think we get along really well because he's someone who I can really talk to about a lot of stuff. We've both been through a lot."

When asked if she could give her fans advice on what to do if you like your friend's older brother, Demi coyly replied, "I don't know!"

Earlier today, Trace tweeted to Demi, "I already told U a bit ago how much i cant stand U! just dont forget it! haha,I MISS YOU! I think my dreams will b better tonight."

Hmm....

Do you think the couple is dating? Have your say in our poll!