The Fallin' star is dating 31-year-old hip hop producer Beatz, real name Kasseem Dean, who is currently going through a divorce with wife Mashonda.
Keys recently turned 29 and is said to have been presented by him with a seven-carat ring just before her birthday.
A spokesman for Keys denied the report but a friend told Us Magazine: 'They are currently in Hawaii celebrating the engagement and her birthday. She feels blessed.'
The friend added: 'She is thrilled. She is with the man who has inspired so much of her music and her new album.' Keys is also reportedly eyeing up a $14.5million New York penthouse belonging to Lenny Kravitz, which has been on the market for eight years.
The penthouse is the former home of Nicole Kidman and Denzel Washington.
Kidman had a very brief affair with Kravitz after her divorce from Tom Cruise.
As well as celebrating her engagement, Keys is on course to secure her highest position on the UK album charts with her new album.
The Element Of Freedom peaked at number seven after its December release.
But it has seen a 48per cent weekly increase in sales following last Friday's performance on Jonathan Ross's show.
source: http://www.dailymail.co.uk
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