SYDNEY'S eastern suburbs rumour mill has gone into overdrive with speculation that Bachelorette favourite and publican Stu Laundy has been recently seeing the separated businesswoman and socialite Tiffany Tilley.

The rumours come after gossip magazines were last week reporting that Laundy was seen out with a mystery blonde while Bachelorette Sophie Monk was overseas in Thailand.

Tilley recently separated from husband of 19 years Ben, who is best mates with casino king James Packer.

Their Point Piper home - which shares a boundary with Prime Minister Malcolm Turnbull and his wife Lucy- is currently on the market.

Both Laundy and Tilley are said to have fielded many calls from their friends over the situation.

One insider said Ben Tilley even personally called Laundy to discuss the rumours.

"Ben and his brother rang Stu to get to the bottom of what was going on. Apparently Stu denied any involvement with Tiffany," the insider said.

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The speculation is said to be spreading throughout the social scenes of Sydney like wildfire.

"It is all over the eastern suburbs," one source said.

"I even overheard a group of guys talking about it at Pelicano the other night."

One friend of Tilley's came to her defence, dismissed the rumours as false.

"I called Tiffany when I heard about this and she is denying anything has happened," the friend said.

"They don't even really know each other."

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Confidential reached out to the pair yesterday but did not hear back.

Laundy is currently the frontrunner to win The Bachelorette, with the final episode set to air this week.

The competition is now down to the final three of Laundy, winery owner Jarrodand Gold Coast hunk Apollo.