Cameron Diaz and Stephen Merchant: Smitten on Set!

and were every inch the smitten stars as they got to work filming their new rom-com The Sham in .

The duo are set to star as unlikely lovers in the upcoming film, after Cameron gushed about her British co-star when she landed the role.

While they filmed their latest scenes in the West Village, Cameron and Stephen struggled to contain their laughter. 

According to Deadline, The Sham sees Stephen play a British hotel worker who is employed at an upscale New York hotel, and desperately needs a wife to maintain public appearances.

He then joins forces with a struggling comedian, played by Cameron, who needs cash to fund her health insurance.

While the pair's fake marriage begins as a business transaction but soon turns into an unexpected romance. 

Last week Cameron shared she would be starring alongside Stephen, famed for his work including The Office in the UK, while appearing on The Tonight Show Starring Jimmy Fallon.

Praising her co-star, she said: '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.'

Stephen echoed the sentiment by sharing the clip on his TikTok, writing: '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.'

Cameron took a break from Hollywood in 2014 after the film Annie, but returned just last year to star alongside Jamie Foxx in Back in Action.

One of her next movies is Shrek 5, set for release in 2027.

The film will see Mike Myers, Eddie Murphy and Cameron all reprising their roles as Shrek, Donkey and Fiona, respectively, while Zendaya joins the cast as Shrek and Fiona's daughter, Felicia.

Cameron will also star in Reenactment with Benicio del Toro.

While plot details for Reenactment are being kept under wraps, reports claim the film will soon enter production in LA.

She is also set to star in the Netflix movie Bad Day, having signed on to feature in the streaming giant's project from director Jake Szymanski, who helmed the acclaimed comedy series Jury Duty.

The movie centres on a single mother who is fighting to keep one small promise to her daughter on the worst day of her life.

The picture has been described as a comedic version of Joel Schumacher's 1993 film Falling Down, in which Michael Douglas plays a man who reaches his breaking point while trying to reach his daughter's birthday party.