Cheryl Tango's with Matthew

Dancing With the Stars champ Cheryl Burke has found a new partner – Matthew Lawrence, the brother of season three contestant Joey Lawrence, a source tells PEOPLE. "They are definitely together," says a friend of Burke's. "Cheryl is very happy." The new couple were spotted getting cozy during the Dancing wrap party in Atlantic City at the Borgata Hotel Casino and Spa on Monday night. "Matthew and Cheryl were dancing close in the VIP area to a few songs and to [Justin Timberlake's] 'What Comes Around," an onlooker tells PEOPLE. According to another source, Burke, 22, had champagne, strawberries and a cake reading "Happy Birthday Matt" sent to her suite at the Borgata on Sunday. (Lawrence turned 27 on Feb. 11.)The couple met during the season three taping of Dancing, but didn't get involved until they reconnected during the tour. "It's early days," says Burke's pal, "but I don't think I've ever seen Cheryl this happy." A rep for Lawrence had no comment.

Source: People