After British tabloid published blurry photos of the 30-year-old art dealer allegedly kissing a mystery woman during a night out in London early Friday morning, Schnabel is clearing the air, explaining that it was an “innocent situation.”
“The claims that have been made are a misinterpretation of an entirely innocent situation,” Schnabel said in a statement to PEOPLE. “There is nothing more to this than I was simply saying goodnight to a family friend and we went on our separate ways.
A source also tells PEOPLE that there is no trouble brewing for the couple and they are “happier than ever” after three-and-a-half years of dating.
Meanwhile, the 44-year-old supermodel and mother of four was all smiles in drizzly New York on Friday, stepping out in a strapless leather dress and black pumps.
“I’m very much in love, so my eyes only have the hearts for someone else,” Klum told E! News when asked if she had a musical crush she was looking forward to meeting inside.
Schnabel is the eldest son of director Julian Schnabel (The Diving Bell and the Butterfly), and he made a name for himself as a curator and art dealer while still a teenager. He dated Demi Moore in 2012, and has also been linked to Elle Macphersonand Liv Tyler.
“How do you know when it is? You just feel it, and then you know,” Klum said of their romance. “Is there something that you can pinpoint on someone? It’s just a whole package that you fall in love with, right?”
And Klum and her ex-husband Seal remain friendly, reuniting on the set of America’s Got Talent — for which Klum is a judge — in May.