Meg Ryan is ''really happy'' after reconciling with John Mellencamp.

The 52-year-old actress, who split from the 63-year-old rocker in July after three years of dating, recently decided to rekindle their relationship after he publicly called her ''an angel.''

A source close to John told PEOPLE.com: ''They are back together and it's brand new. They're really happy about it.''

The couple, who were spotted strolling through SoHo in New York City last week, broke up as they were forced to spend long periods apart, as John lives in Bloomington, Indiana, while the 'You've Got Mail' star lives in Manhattan with her adopted daughter Daisy, nine.

But the 'Jack and Diane' hitmaker recently hinted he hadn't completely given up on the blonde beauty.

During an interview last month, he said: ''Meg is an angel. She was just an angel sent to me at the right time.

''We tried to have a relationship for three years - long distance. We'll see what happens.''

A source previously said they ''had distance problems during the entire relationship and tried to make it work, but it wasn't meant to be.''