It seems that Miley Cyrus is ready to forgive her beau after his rumored indiscretions in Cabo.

Us Magazine reported that Miley was seen in L.A. with Patrick Schwarzenegger on Monday, at a Japanese restaurant in the Studio City neighborhood, one week after the photos from Schwarzenneger's questionable Mexican spring break surfaced.

A fellow diner at the swanky restaurant told Us Magazine that the pair had a late-night dinner, saying, "It was just the two of them. They were out on the patio for about an hour."

However, even if Miley seems to have forgiven her boyfriend, their relationship status is hanging in the balance, multiple sources told the magazine.

A friend close to Patrick said that Miley's boyfriend initially had a difficult time tracking the pop star down when the photos were posted, and considering that he was snapped linking arms and taking shots with a sorority girl, it's not that hard to imagine that Miley is not down with it. The source also added, "He's been trying to see [Miley] in person to explain, but she's traveling."

Meanwhile, a source close to Miley told Us, "She's not happy with him."

Another source told People Magazine: "Miley is embarrassed about the photos and Patrick is devastated about that because he really cares about her," later adding, "He didn't cheat or kiss anyone but she's still not happy about the photos. It's just embarrassing for her, and him."

However, Patrick was very adamant that he didn't cheat on his girlfriend, and he took the issue to Twitter by posting, "Would NEVER do anything against my GF. Girls have guy friends and guys have friends that are girls..."

According to E! News, Patrick sought comfort from his friends as he didn't know what to do after the photos surfaced.  One of the insiders told E!: "He doesn't even know what to do with himself and just wants to hide from the world. He's had some of his friends around for support, but he's very down and upset. He hasn't cracked a smile or been able to think about anything except Miley. He's so embarrassed and knows he screwed up." 

While Patrick, who is a full-time student at USC, has been laying low after the incident, Cyrus was partying, and PEOPLE reported that she made a surprise appearance at the South by Southwest festival in Austin, Texas, on March 19, before heading off to Las Vegas.

A source however, said that the couple is trying to work out their issues and it seems that the dinner at the swanky Japanese restaurant is the first step to fixing their relationship.