Vanessa Valladares/Instagram; Samir Hussein/WireImage Vanessa Valladares, Zac Efron
The pair first met when she was working as a waitress at the Byron Bay General Store & Cafe back in June. Byron Bay is a celebrity hotspot in Australia where Efron had been spending time amid the COVID-19 health crisis.
"Zac broke things off with Vanessa recently. It just didn't feel right to him anymore," a source tells PEOPLE.
Despite their fizzled romance, the source says Efron has no plans of returning to live in the U.S. anytime soon.
"Zac will still stay in Australia. He just loves Australia so much," the sources adds. "He is working and busy with several upcoming projects. He is happy, healthy and enjoying life."
Earlier in the week, Australian radio host Kyle Sandilands, who's friends with Efron, said the pair had broken up.
"Well, it's not just The Daily Telegraph [reporting the breakup]," Sandilands started on his radio program The Kyle and Jackie O Show. "I can also confirm after speaking with him yesterday. Because I heard the rumors."
"...they've gone their separate ways," he added. " [There was] no drama. It's done. He's back to work."
In September, after the Baywatch star was spotted having lunch with Valladares at a beachside cafe in Australia, another source told PEOPLE that Valladares met Efron during the summer while working.
"Zac met Ness earlier in the summer. They started hanging out in July and recently took a ski trip together," the source said at the time. "You can tell that they are having fun. She spends a lot of time at this house."
The two seemed more serious by the time Efron's 33rd birthday rolled around in October and he spent his special day with her.
"Zac and Vanessa are very happy. They celebrated Zac's birthday with friends before the weekend," an insider said at the time. "Their relationship is very serious. Vanessa lives with Zac in Byron Bay."
The star was last romantically linked to Olympic swimmer Sarah Bro in March 2019. He previously dated his High School Musical costar Vanessa Hudgens and was also linked to his Baywatch costar Alexandra Daddario.