The glamour model-turned businesswoman was left stunned when her Argentinian lover of seven months turned up at her house and presented her with an engagement ring, according to The Sun.
Price is quoted as telling a friend: "Leandro came to mine on Christmas Day and asked me to marry him. It was a massive shock and completely out of the blue. I don't know what to do."
However, the source claimed that Price has no intention of rekindling her romance and a spokesperson confirmed to the publication that she "remains single".
"For once Katie actually sounded a little guilty," the insider said. "Leo is desperate to get back together with her and doesn't care she has been pictured out with other men since they broke up.
"He holds a flame for her and obviously believes asking for her hand in marriage will sweep her off her feet. Unfortunately he does not feature in Katie's plans."
Price separated from Penna back in August. While they were still together, she claimed that she would marry Penna "when the time is right".
Price has since been romantically linked to rugby player Danny Cipriani and the ex-husband of rival model Lucy Clarkson.