"We are not dating but just very close," Montag told Us at the Sports Dream Celebrity Poker pool party on Sunday in Beverly Hills.
What does the 25-year-old star -- who supposedly had plans to go to Hawaii with Sanjaya and drove from L.A. to Seattle to meet his parents -- make of the romance rumors?
"It was funny," she tells Us. "I was shocked because we were such close friends, and I had no idea that anyone else thought there was anything romantic going on. People in camp joked about it, but we knew it was a joke so it was funny to us."
No matter what, she doesn't let the rumors stop them.
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