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Published 20:32 5 Aug 2015 BST
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The star has reportedly been texting Nick.
US Weekly reports that the pair were set up by pal Gigi Hadid, who is widely rumoured to be dating Nick's older brother Joe.
The insider revealed: "They had a flirty chemistry from the start.
"Nick was single and looking to date and there was an obvious attraction.
"When they're ready and it turns official, we'll start seeing photos."
Kendall and Gigi hanging out in LA recently.
Gigi is apparently eager for the four of them to hang out, the insider also revealed:
"Gigi wants Kendall around all the time. She thinks it would be fun for all of them to hang out.
"They are all going to end up hanging out regardless, so it seems like a simple situation, which could be a lot of fun."
Gigi and Joe reportedly started dating earlier this year.
When asked about the rumours recently, Nick neither confirmed or denied the relationship, but did hint that there is something there.
He told The Mirror: " Joe has mentioned that a few times and so has Gigi.
"We'll see, I don't know. We'll play it by ear. I wouldn't be opposed to it."
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