The wedding between film star Liz Hurley and her Indian lover Arun Nayar has been called off, a London tabloid claimed on Sunday.

In a front-page report, The News of the World said Nayar, a 37 year old Mumbai-based businessman, called off his wedding with Hurley, 38, after rows over her expensive lifestyle.

According to the tabloid, his finances took a severe dent in July when he had to pay his Italian model wife Valentina Pedroni an estimated £625,000 divorce settlement.

However, the tabloid quoted a spokeswoman for Hurley as saying that the two "are still happy together".

Nayar reportedly told his friends he hated being treated as a "kept man". Hurley is devastated, the report said.

"Proud Arun Nayar's cash problems have led to him jilting one of the sexiest women in the world," the tabloid stated.

For a while Hurley -- a millionaires many times over -- can splash out on virtually anything she wants. Nayar has been left counting the pennies, the report added.