Today's best gossip from the set of Gossip Girl? An update on Blake Lively and Penn Badgley, whose characters, as we know, used to date on the show.

Blake and Penn have dated for a good length of time now (May 2008 was our first report on the couple, who may have been together prior to that).

Is it looking like this could be a (gulp) forever thing?

According to a close pal of Lively's, it very much is. The couple are expected to announce their engagement soon - at least their friends think they are.

There's a lot to love about Blively. Possibly for life!

Sunday is Badgley's 23rd birthday, and while some speculated they might have something else to celebrate then, engagement talk is premature.

A little.

''I think if November 1 was Blake's birthday, he might have surprised her with a ring,'' quipped the source. ''But my guess is over the holidays.''

Hard to believe one of our favorite Gossip Girl couples could be making it official. We certainly wouldn't object! You two kids have our blessing!

Steve Marsi is the Managing Editor of TV Fanatic. Follow him on Google+ or email him here.