AceShowbiz - Celine Dion has laughed off reports linking her to dancer Pepe Munoz, insisting he is gay.

The singer has been linked to Munoz romantically for weeks, but now she's setting the record straight as she announces her first world tour in more than a decade, insisting her backup dancer is nothing more than a good friend.

"At first, I felt for him quite a bit," she tells news show "Extra". "Pepe is gay, and at first I think some people did not know that.

"The thing is that he's my best friend and we dance together and he did so much for me and even just holding my hand... it's something that I haven't had for a long time... A hug from a 6" 3' man, it was wonderful... and people really thought there was a romance going on."

Celine reveals Pepe was there for her while she was mourning the death of Rene Angelil, her husband of 20 years: "He did so much for me, for my mental health, my spirituality, my strength... my inner strength," she tells the news show.

The "My Heart Will Go On" singer recently fuelled romance rumours during an appearance on "Good Morning America", but was quick to point out she's just in love with life and nature three years after Rene's death.

"I am in love," she admitted. "Love is not necessarily to marry again. When I see a rainbow, when I see a sunset... a beautiful dance number, I laugh, I cry. I'm very much in love."

"I feel stronger, more beautiful, more grounded." We sat down with @CelineDion to talk about life after loss, turning 50 and the end of her 20-year run in Vegas. Find the full story here: https://t.co/C3nCvjfi5Bpic.twitter.com/UDgyxf24sv

— Good Morning America (@GMA) April 2, 2019

Meanwhile, Celine, who was announced as the new global ambassador for L'Oreal Paris earlier this week, is preparing to take the stage at Caesars Palace in Las Vegas on June 8 for the last time after a 20-year run at the venue. Her first world tour in a decade, Courage, will kick of in September.