Taylor Swift and Harry Styles's New Year argument is reportedly now a "distant memory".

The American singer and One Direction hunk were said to have called time on their romance after a heated exchange during a holiday in British Virgin Islands.

Earlier this week Taylor jetted to the UK, apparently with the intention of rekindling the relationship. It's now thought her plan has worked, with the pair deciding to give things another go.

"Taylor realised she was being a bit full-on," a source told British newspaper The Sun.

“She is now more relaxed about their relationship. She intends to enjoy it more rather than worry about where it could eventually lead.

“Harry is not the sort of guy you can stay mad at for long. She’s given him some space and it’s done them both a world of good.

“What happened over New Year is now a distant memory."

Although the details of the pair's argument aren't known, it has been widely reported that Harry grew bored of Taylor's interest in antiques and refusal to take their romance to the next level.

To show they are firmly back on track, the pair plan to attend a French music awards ceremony together this weekend. They will be staying at the same hotel in Cannes, with the One Direction star apparently planning to wow his girlfriend with romantic plans.

The pair are also thought to have discussed the upcoming BRIT Awards, where they are both nominated. It's not known if they will take to the stage together at the UK ceremony, but they are definitely using the event as a way to spend an evening together.

"They've both been invited to the BRIT Awards and are considering appearing together," an insider told British magazine Heat.

"They're keeping their cards close to their chests, but secretly both are very excited at the prospect of using the awards as an opportunity to see each other. They miss each other."