The couple, who started dating in 2002, were spotted checking out rings at a number of Beverly Hills jewelers on Jan. 4, according to publication In Touch, and friends claim they're planning to wed this year.
A source says, "Mila's looking for a ring that's unique and may even opt for a ruby instead of a diamond."
Culkin, 25, was previously married to actress Rachel Miner, but the union lasted just two years. They divorced in 2000.
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