The actress fuelled rumours of romance with Craig - after she was spotted in London with him earlier in June. Speculations also sparked when Watson spent time with Craig, who also fronts rock band 'One Night Only", at music festival Glastonbury earlier this week.
And in an interview with Jo Whiley from Radio 1 during the music event, Watson confirmed she is dating Craig. When asked what their celebrity dating nickname would be, she said: "We haven't (heard one yet). ''Watage''? It wouldn''t really (work)," reports the New York Post.
Watson laughed when she was asked: "Have you been together ages or is it new?" And replied: "We've been friends since the Burberry shoot. And when I was in the States, George was taking me through a lot of his music as he was recording it. I couldn't believe (how good the music was). I'm a big fan. Everything he did was amazing."