LaBeouf admitted in June (09) that he has always been attracted to Fox, whose on/off relationship with actor Brian Austin Green reportedly cooled over the summer (09).
He told reporters, "I'm a 23-year-old red-blooded male, so sure there's a lot of real (chemistry) there. She's a beautiful woman."
However, the action star appears to have moved from Fox and taken interest in British actress Mulligan, his co-star in upcoming Wall Street sequel Money Never Sleeps.
The pair was spotted kissing and cuddling over drinks at West Village restaurant Extra Virgin on Sunday afternoon (23Aug09), reports the New York Daily News.
Spokespersons for LaBeouf and Mulligan had not returned requests for comment as WENN went to press.
Fox Television Chairman Brian Mulligan resigned Wednesday after spending only nine months at his post. Mulligan, the former co-chairman of Universal Pictures and CFO of Seagram, cited the "time demands" of his work and his desire "to strike a better balance between my personal and professional life."