Daily Mail Australia has contacted Sarah and James for comment.
In October, Woman's Day reported James had 'fallen into the arms' of his new co-star Sarah.
The pair were even spotted together in Bondi just last week.
James made the romance Instagram official by posting a picture of him and Sarah, alongside a love heart emoji, on the social media platform yesterday (January 28).
UK viewers have only just been introduced to Willow, whose arrival in Summer Bay initially brought a whole heap of trouble to Justin's door.
However, Aussie fans will know that their feud eventually leads to passion.
Meanwhile, Sarah flaunted her curves in a breezy blue sundress, showing off her natural beauty by wearing minimal makeup.
Sarah and James appeared smitten with each other as they made their way along the street holding hands.