New York: Padma Lakshmi, the estranged wife of Booker Prize winning author Salman Rushdie, has been spotted with entrepreneur Teddy Frostman.

Princess Diana's former suitor Frostman is the owner of IMG, which represents the American reality show "Top Chef" hosted by Padma Lakshmi.

Reports about their romance had floated earlier also, but it was clarified that their meetings were just for business. But now it can be confirmed that the two are romantically involved, pagesix.com reports.

The couple spent time with rocker Elton John and Elizabeth Hurley at Evelyn Lauder's party to raise money for breast-cancer research.