Hugh Jackman has been spotted at what seemed like business lunch with Disney teen sensation Miley Cyrus.

The 40-year-old Australian actor - who used to be big on Broadway before he became a Hollywood star - has sparked rumours he is planning a new musical after he was seen dining with Miley, 16, her mother Tish and an unknown guest at Morton's Steakhouse in California.

According to US OK! magazine Hugh, dressed casually in a leather jacket and jeans, ate the NY Strip steak and the Tuna Tartar.

Hannah Montana star Miley just had a baked potato and wore torn jeans and black high heels.

The extra guest was believed to be a producer joining them for business discussions.