The former Dancing with the Stars contestant told Howard Stern on his radio show that he has moved on from estranged wife Courteney Cox, revealing that he is in love with TV reporter Christina Mclarty.
"Yeah, I am," Arquette said when asked if the relationship was serious. "It's not a rebound."
Arquette and Cox split in October 2010 after 11 years of marriage.
The actor went on to say that Cox was devastated by his new relationship.
"She was sad," Arquette said. "We were both sad. We both cried."
In August, he said that that he and Cox were trying to find out whether they are still "compatible as a couple", insisting that they had yet to make a decision about whether they will get back together.
Arquette was eliminated from Dancing with the Stars last week. He has since declared that he found his stint on the competition to be incredibly rewarding.