The British glamour model reportedly told cage fighter Alex Reid she wants to get engaged as soon as her divorce from estranged husband Peter Andre is finalised.
Friends of the sexy star are stunned by her shock proposal, which came after Alex took a phone call from former girlfriend Marie Thornton in front of Katie – also known as Jordan.
A source told Britain’s Daily Star newspaper: “Marie was really shouting at Alex. She was telling him they’d been together for 15 years and this is how he is treating her.“Katie came into the room and wasn’t impressed, so when Marie hung up she laid into him as well. But she also told him she could see them getting engaged after the divorce. Alex certainly didn’t say no, put it that way. He is really into her.”
Katie and Alex – who both deny they are romantically involved with one another – left Marie “devastated” when she read reports of their noisy sex sessions at Liverpool’s Malmaison hotel.
A friend of Marie – who last saw Alex nine days ago at his 34th birthday party and still claims to be in a relationship with the former ‘Hollyoaks’ actor - said: “They were childhood sweethearts, but Katie has been chasing him for a while and it looks like he has caved in. She had a feeling something was going on after she found text messages on his phone. Alex reassured Marie he and Katie were only friends.
“Marie feels humiliated – like she is the last person to know.”
Katie’s spokesperson insists Alex – who is listed as in a relationship and claims his interests include “my girlfriend and her little boy” on his MySpace page – has been drafted in as a bodyguard while the 31-year-old star is promoting her latest book, Sapphire.
However, a source at the Liverpool hotel where they spent the night last Thursday, said: "They were all over each other earlier in the night. It was clear they needed to get a room. And when they got inside there was a lot of noise, a constant banging.
"Within about five minutes of them banging the door shut there was another banging noise coming from the room. We certainly couldn't sleep for it. It was loud! When Jordan came out the next morning she had a huge smile."