The Myer department store modelling duo, who attended this year's Melbourne Cup together, were reportedly spotted flirting in their VIP tent in the absence of his partner Dannii Minogue and her fiancé Jake Wall.
One onlooker told Woman's Day magazine: "There did seem to be a chemistry between the two of them. It was hard not to notice because they are just so ridiculously good looking!"
Former Miss Universe Australia Hawkins said of Smith: "Kris is so much fun, he's such a cool guy. I just love going to work. Jake wasn't here for Derby Day, but I went out to the afterparty with Kris and a few other people. He's much more of a mate to me - it's nice."
An industry insider also revealed that Minogue is aware of Smith's flirting, saying: "Dannii knows only too well how popular Kris is with the ladies."
Smith and Minogue were rumoured to have split earlier this year amid reports that she treated him like a member of staff.
They later released a statement saying that they were totally "committed" to their relationship and their young son Ethan.
> Kris Smith vows to stop talking about Dannii Minogue
> Jennifer Hawkins: 'Modelling is superficial but I'm real'