Cameron Diaz and Stephen Merchant are starring as lovers in the upcoming rom-com The Sham after the American actress gushed about the British actor and writer. The pair were spotted in the heart of New York City’s West Village on Thursday, struggling to contain their laughter as they were working together on the project, which is being written and directed by 51-year-old Stephen. According to reports, the movie sees Stephen portray a hotel worker at a fancy establishment who desperately needs a wife to maintain public appearances. He then links up with a struggling comedian, played by Hollywood icon Cameron, who is trying to raise enough money to fund her health insurance.

Their fake marriage starts as a business transaction, but romance blossoms between the duo later.

Cameron recently praised The Office star during her appearance on The Tonight Show Starring Jimmy Fallon, saying: “I'm doing a movie with Stephen Merchant, so great, gosh he is the best. I'm doing a film here with him. I don't know the name of it yet.”

Meanwhile, Stephen said on TikTok: “Thanks so much for the love @Jimmy Fallon and @Cameron Diaz. Having a great time making this movie in glorious NYC, can’t wait to share it.”

After a hiatus from filming, Cameron returned to acting last year to star in Back in Action alongside Jamie Foxx.

One of her upcoming films is Shrek 5, due for release in 2027, with the star returning to her iconic role as Princess Fiona.

"It's a journey. I think it's different for everybody. It's been 30 some odd years," she recently told PEOPLE when reflecting on her successful career.

"You kinda sit in, just like an old saddle, you know? It's like you've galloped in it, you've trotted in it, you've walked in it, and you kind of settle into it and find your rhythm. That's just kind of how it works. It's hard to explain, you know?"