But the singer has revealed that the speculation is not true, telling E!: "We're not dating.
"Kendall is great and naturally with her being good friends with Gigi [Hadid] and with Joe [Jonas] and Gigi dating, there are times we'll be in the same place and we all hang out," he explained.
On the contrary, Nick is actually enjoying some alone time after splitting with his girlfriend of two years, Olivia Culpo, in June.
"I'm trying to take the time to walk out this next phase of my life and be single the right way," he revealed.
"I [also] like being able to work as hard as I want. I'm incredibly driven and with all the projects I have going on, they take up a lot of my time. I like to work hard and just be as focused on work as possible."
Kendall was said to have been set up with Nick by her BFF Gigi, who is dating Nick's brother Joe.
"Gigi wants Kendall around all the time," a source told US Weekly. “She thinks it would be fun for all of them to hang out.”
Gigi and Joe also knew it wasn’t going to be difficult for the pair to find time to get to know each other. "They are all going to end up hanging out regardless, so it seems like a simple situation, which could be a lot of fun," added the source.
And Kendall seems to have hit it off with Nick. The pair are said to be getting to know each other better over text, but that " they had a flirty chemistry from the start", another source told the publication.