After months of rumours the handsome star has spoken out to set the record straight, saying the pair are "just friends".
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"It just makes me laugh," Kellan told radio host Ryan Seacrest. "I've been friends with Miley for like six years. She's a great girl…We are friends [and] we run in the same circle."
The 28-year-old was full of praise for the Wrecking Ball singer, calling her: a "cool, secure woman."
He added: "Are we dating? No. I'm happily single…I'm not [looking for a relationship] right now. I'm enjoying life and traveling quite a bit…there's no real time to find the one."
Miley and Kellan were first touted as a new couple in December, when they were spotted exiting the same private jet in Miami.
While they're not officially together, sources have said the pair are just "having fun together" since they have similar outlooks and personalities and "great chemistry".
Since her split from fiancé Liam Hemsworth, Miley has been romantically linked to a handful of handsome young men – including Liv Tyler's ex Theo Wenner.
While she's yet to find lasting love, the 21-year-old singer says she is in a good place and has no regrets about her engagement to the Hunger Games star.
"I don't think I realised what 19 truly is, and I got engaged at 19, and I definitely wouldn't change being engaged. It was so fun wearing a fat rock for a few years," she said. "But now, I just feel like I can actually be happy."