'Katie just couldn’t get over her trust issues,' a source reportedly told RadarOnline.
The pair had insisted they were just good friends following Katie’s divorce from Tom Cruise.
According to the US outlet, Katie agreed to not publicly date another man for five years in exchange for US$5.8 million in child support and US$6.2 million payment for herself.
An insider claimed: 'Katie signed a clause in her quickie divorce settlement that prevents her from embarrassing Tom in various ways, like talking about him or Scientology, or publicly dating another man for five years after the divorce.
'She’s allowed to date, but she cannot do so in a public fashion, and she’s not supposed to let any boyfriend near their daughter, Suri.'