Kylie Minogue's Dahm holiday

May 10, 2007, 11:20 GMT

Australian singer Kylie Minogue - Wednesday April 11, 2007 EPA/Wang Rongjiang/Shanghai Daily

Kylie Minogue is enjoying an intimate break with a married man.

The pop princess - who flew to Chile last Wednesday (02.05.07) - has been staying with South American film director Alexander Dahm at his £1 million apartment in the idyllic province of Colchagua.

The pair have since been seen enjoying a boat cruise and sharing a cosy meal at a beachside restaurant in the exclusive resort of Vina Del Mar.

Dahm's wife Laura - who is eight months pregnant with their second child - remains at the couple's marital Mexico home.

Kylie - who has been single since splitting from Olivier Martinez in February - was reportedly "bowled over" by the 39-year-old filmmaker when they first met on her bikini modelling shoot for H+M in Acapulco in January.

However, close friends have warned the 38-year-old singer not to embark on a relationship with Dahm - who already has a three-year-old son Matias.

A friend said: "Everyone would love her to settle down and be happy but Alexander is not the right man for her.

"They get along brilliantly, but the last thing she'd want is to break-up a marriage. It's just not her."

Dahm's wife Laura has laughed off romance rumours, saying: "I have nothing to worry about."

Kylie insists she is just "good friends" with the married director.

The 'Slow' singer said: "I am in Chile for pleasure - to get to know the country and to visit my friend."

In a posting on her website, Kylie said she is in South America to work on a film musical.

She wrote: "Greetings from South America. I'm working on an idea for a new musical film, which has been in the pipeline for some time. It's very exciting for all the team involved."

(C) BANG Media International