The 65-year-old former Beatle and the 38-year-old actress met for an intimate meal at The American Hotel restaurant, in The Hamptons, on Thursday (August 30, 2007), just days after being spotted getting cozy at a New York concert.
Renee - who reportedly arrived first at around 8.30pm - greeted Paul with a warm embrace before they sat down at their table by a fireplace.
One diner said: "The dining rooms are extremely dimly lit, mostly with candlelight. It's an extremely romantic place to meet. They really looked like they were enjoying themselves."
The pair - who both have homes in the exclusive upstate New York State area - are said to have spent two hours lingering over their meal before sharing a hug and leaving separately.
The couple were pictured having an intimate chat at a Tom Petty and the Heartbreakers show in The Hamptons on August 25.
Renee has previously been romantically involved with a number of musicians.
She was married to country singer Kenny Chesney but the pair split in 2005 after just four months of marriage, while she enjoyed a two-year relationship with White Stripes rocker Jack White.
Paul is currently divorcing estranged wife Heather Mills, and has recently been linked to 53-year-old ex-model Christie Brinkley.
Brinkley was also present at the Tom Petty concert and was said to be seething over the level of attention Paul paid Renee.
At the time, a friend of the "Get Back" rocker dismissed the chat, saying: "Nothing's going on. Paul just got talking to Renee."
