Kylie 'just friends' with director

Kylie Minogue is holidaying with Chilean film director Alexander Dahm - but his wife has insisted they are just friends.

The pair have been pictured dining, cruising and giggling during their past week together in Chile.

Some reports have suggested there is more to the relationship than friendship, but Dahm's wife Laura, seven-and-a-half-weeks pregnant with their second child, disagrees.

"This romance is not correct," she explained from her home in Mexico City. "It is not happening. I feel for Kylie - it must be awful to be portrayed as the other woman. They are just friends."

However, a friend of the singer told the Daily Mail Dahm reminded Minogue of ex-boyfriend Michael Hutchence.

"Initially Kylie was telling us that they were just friends," she explained. "But her tune has changed. She has been saying he is the most amazing guy she has known since Michael Hutchence, which is a very big thing for her to say.

"When we asked if there was anything going on like an affair, she said, 'Well, what do you mean by an affair?' Then she said something quite peculiar, she said, 'Sometimes you can have a mental affair.'"