We told you a while ago that Selena Gomez and Demi Lovato were shifting from friends to frenemies because Selena replaced Demi with Taylor Swift.

As Bestie 1. Well, things are about to get even more...awkward. Demi's now showing off her latest arm candy -- Taylor's ex, Joe Jonas.

Access Hollywood's Billy Bush asked Demi, "So you [and Joe] went from boyfriend-girlfriend to best friends?" Demi told him.]

It was the other way around, and when directly asked if she was dating Joe, Demi confessed, "Umm, yeah he is my best friend and he is incredible."

Even though Selena is dating Joe's younger bro Nick Jonas, don't expect paparazzi to catch these two Disney power couples on a double-date.

After the romance news broke, Demi tweeted, "By the way... I would never lie to my fans. I love you all... and I've never been happier. :)" She may be smitten with Joe, but we bet she misses Selena.