Nicole Richie admits she set up Cameron Diaz and Benji Madden

Nicole Richie has confirmed that Benji Madden and Cameron Diaz are definitely an item. We knew it!

During an appearance on Watch What Happens Live, the 32-year-old revealed that she approves of the hot new romance because she was the one behind it all!

"I approve of anything that's going to make Benji happy," Nicole said. "I am a devoted sister-in-law. I'm happy for anyone who is happy and I want everyone to be surrounded with love."

Host Andy Cohen then asked if she was the matchmaker responsible for the hook-up and the Candidly Nicole star fessed up: "Yes. I'm going to take responsibility for everything."

Benji, 35, and Cameron, 41, have stayed tight-lipped about the whole thing, but are rumoured to have been dating for the past few months. Get the scoop in the video below…

Nicole has been married to Benji's twin brother Joel since 2010. They have two kids together, Harlow, 6, and Sparrow, 4.