Even though last week it was announced (through sources) that Ryan and Rachel were engaged – it’s looking like that might not be the case this week.

“It’s a break, not a breakup,” says one source, who adds that while McAdams is very dependent on Gosling, the recent Oscar nominee wants some distance so he can focus on his sizzling career.

“It’s a pivotal moment for him,” says the insider.

Still, McAdams “is taking it really hard because Ryan is everything to her,” says a source.

A third insider, who says the pair split several weeks ago, adds, “Ryan was in love with her, but it didn’t work out because of their conflicting work schedules.”

Says the pal, “They’re both miserable. Hopefully they’ll get back together soon.”

Rachel’s rep is denying the story…so here’s to hoping this isn’t true!