Barely three months after James Packer ended his six-year marriage to the mother of his three children, former model Erica, the billionaire casino mogul has reportedly embarked on a new relationship with another beauty who also hails from the same country town as his ex wife: supermodel Miranda Kerr.

On Monday morning Woman's Day magazine, which was once owned by the Packer family, is set to publish claims Packer, 46, and Kerr, 30, are now in a serious romantic relationship.

PS understands Woman's Day editor Fiona Connolly is ''standing behind the story 100 per cent'', while neither Packer nor Kerr have denied the report nearly a week after first being approached by reporters. It is understood the status of their relationship, said to still be in its very early stages after a long friendship, is a sensitive matter given their recent marriage breakdowns.