Recent rumours suggested that the duo were dating, but Styles's representative later said that he is "single".
Halpern has now confirmed that she is friends with Styles after meeting him through her friends in Big Time Rush last month.
"We've been friends ever since," she told E! News, though she refused to confirm that she is dating him.
"He's adorable," Halpern admitted. "He's a great guy. Like, who doesn't have a crush on Harry Styles? I don't know, yeah. He's great. He's a good friend, he's a very good friend."
Halpern revealed that she has spoken to Styles even though he is in Australia but admitted that it is "hard" and suggested that their different schedules would stop any budding relationship.
"He's so busy - even in the past month and a half since we met he has only been in New York a couple times," she said. "It's hard - I haven't been able to see him that much. I think it would be very hard to have a relationship with someone who is in Australia and then in the UK.
"We're really good friends. If he was here all of the time things would probably be different, but we're friends for now."
Halpern, who revealed that she could work with One Direction in the future, also admitted that she has received some "pretty serious, I'd say hate mail" from the band's fans since the rumours that she was dating Styles emerged.
"But it's not anything that I can't handle," she continued. "I think they're just protective of him and of the whole band. Their fans are so passionate about the band - they want to make sure anyone he's involved with is good enough for him. I promise I'm a good friend to him!"
Styles has recently been linked to Irish photographer Sarah-Louise Colivet, while Rihanna has described him as a "star".
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Watch Lily Halpern talking about Harry Styles below: