Kylie Minogue Still Vacationing With Married Director  5/10/07

Kylie Minogue is still attracting controversy over her new friendship with director Alexander Dahm, despite his pregnant wife's insistence it is strictly platonic.

Minogue arrived in Chile last week (ends04May07) and has since been holidaying with Dahm in Colchagua, just outside the capital Santiago.

This week (ends11May07), the couple have been photographed enjoying boat trips and dinners. Minogue is staying at the 39-year-old filmmaker's $2 million apartment, sparking reports they are more than just friends.

The Tears On My Pillow singer, 38, struck up a friendship with Dahm after meeting his during her H&M bikini shoot in Acapulco, Mexico, in January (07).

Minogue's spokesman admits he isn't sure what the star is doing in Chile, "We knew she had time off but she's made her own schedule."

Dahm's pregnant spouse Laura told Britain's Sunday Mirror last weekend (06May07), "Alexander and Kylie have struck up a friendship. But it's ridiculous to think there is some sort of affair going on. There isn't, they're only friends and I'm not worried..."