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Ashlee Simpson and her boyfriend, Fall Out Boy bassist Pete Wentz, got hot and heavy at a New Year’s Eve party at the Shore Club in Miami, Fla., where Ashlee flaunted a simple band on her left ring finger. Then, on New Year’s Day, little Simpson showed off the substantial jewelry with even greater flair, prompting rumors that the couple is engaged.

Rumors swirled in July 2007 that the two were betrothed, but her rep denied it. The rockin’ duo has been seen together since early 2007, but in February, Pete told Rolling Stone, “Maybe in a different universe, we’d be some hot couple, but not in this one.” However, they sang a different tune in April when they were spotted holding hands and making out at nightclub Parc in L.A.

Could the coy couple, who spent Christmas together with Ashlee’s family in Texas, be kicking off 2008 by taking their relationship to the next level?

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UPDATE: US Magazine is reporting that Ashlee and Pete ARE NOT engaged:

Ashlee Simpson and Fall Out Boy rocker Pete Wentz are not getting hitched, their reps tell Usmagazine.com.

Talk of their engagement started after the singer rocked a ring on her left finger while celebrating the new year at Miami’s Shore Club with Wentz.

But her rep tells Us, “Ashlee is not engaged” – a denial confirmed by Wentz’s rep.