The singer, 23, is believed to have reconciled with the 38-year-old after revealing she is no longer single on Facebook social networking website recently.
Both Lily and Ed - who ended their three-month relationship earlier this year shortly after Lily suffered a miscarriage - altered the status on their personal profiles to "in a relationship." The couple were then swamped with messages of congratulations from friends.
Glastonbury organiser Emily Eavis posted a message on the website to the couple saying: "We knew it! What a hullabaloo."
The reunited couple have been spotted together on numerous occasions in recent weeks, including shopping for utensils for Lily's new house. They were also inseparable at the Glastonbury festival - where Lily made a surprise appearance with Mark Ronson - as Ed comforted Lily following the death of her grandmother.
A friend of the couple told Britain's The Sun newspaper: "Ed was there for Lily when she really needed him and that has brought them closer together. They have decided to give it another go."
Lily has just completed work on her new album, which has the working title 'Stuck on the Naughty Step' and is due for release next year.
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