The X Factor choreographer, who met up with the pair after they flew out to Los Angeles, said that they were "incredibly happy" together.
He told The Mirror: "I'm very close to them both. They're amazing people and make a great couple. I thought they would make a good couple and I'm so pleased to say they do.
"They're very, very cute together. Cheryl and Derek both seem incredibly happy right now, that's all I can say."
Despite recent reports that Cole was due to meet Hough's parents and that the pair were moving in together, there has not yet been an official announcement about their rumoured relationship.