Peter's spokeswoman confirmed this morning: "It is true that they are expecting a baby, they are over the moon."
Emily, 23, was snapped at Music On the Hill music festival this weekend before anyone knew she was pregnant.
The gorgeous medical student was dressed in a pair of denim shorts teamed with a baggy white top which skimmed over any potential baby bump.
[Peter Andre and Emily MacDonagh expecting a baby - all the details]
[Peter Andre gives us all the gossip on his relationship with Emily - EXCLUSIVE]
She wore her long her down and hardly had a scrap of makeup on, as she sipped from a can of coke and chatted with friends.
Peter, 40, was performing at the festival and it seems that Emily was being the supportive girlfriend. It may have also been the first time that their unborn baby had heard its Dad perform live. Aw.
A source revealed that the pair, who have been together just under a year, are overjoyed at their baby news.
The source said: "Peter and Emily are over the moon. They absolutely adore each other, so having a baby together feels completely natural.”
"Emily has just finished her degree at Bristol University and has passed all her exams. She still wants to have a career as a doctor, so it is very unlikely she will be a stay at home mum," the source added.
Peter already has two kids with ex-wife Katie Price, Junior, eight and Princess, seven. It's Emily's first baby - but as anyone who's watched Peter's reality show will be able to confirm, she's a natural with children.
Peter recently told Yahoo! omg! exclusively that he loved being with Emily because she's not interested in fame.
He told us: "It’s good to be with someone outside of the industry. It’s so nice to be with someone who’s just different. You know when they say that opposites attract? I never understood what that meant. But now I know it doesn’t mean looks, it could mean in a situation like this. We’re so opposite in what we do but yet we connect."