The 31-year-old glamour model allegedly spent the night with Reid, who played Jason Cunliffe in the Channel 4 soap, at Liverpool's Malmaison hotel on Thursday after two weeks of dates. It is believed that the couple were spotted together at the hotel bar before retiring to their room at 1am.
Price was in the city for a book signing following the recent launch of her new novel Sapphire.
An onlooker told the News Of The World: "They were sat with friends but Jordan couldn't keep her hands off Reid. She was rubbing his leg up and down suggestively and kept whispering in his ear.
"She was literally draped over him. It was very dark in the bar so they probably thought nobody would notice but Jordan's teeth were gleaming and you could spot them a mile off."
Meanwhile, a guest from a nearby suite commented: "It was clear they needed to get a room. And when they got inside there was a lot of noise, a constant banging."
Reid has focused on a career in cage fighting since leaving his Hollyoaks role in 2001.
Price split from husband Peter Andre in May after nearly four years of marriage.