Kate Hudson to Cameron Diaz: I didn't sleep with your man

Cameron Diaz and Kate Hudson used a chance meeting in New York to reconcile over lingering rumors about Justin Timberlake, according to a pal.

The "SexyBack" singer attended Hudson's star-studded New Year's Eve bash in Los Angeles, sparking rumors of a hook-up. He and Diaz had recently broken up.

But a friend of one of the actresses tells me: "Kate and Cameron ran into each other outside the bathroom at the Waverly Inn a couple of Saturdays ago. Kate told Cameron: 'I didn't sleep with your man, you know.'"

According to the source, "Cameron teared up, and they hugged."

Hudson had been in town with her new beau, Owen Wilson.