Transformers star Megan Fox and Brian Austin Green have quietly ended their engagement to be married, a source confirms to PEOPLE. "The decision was mutual," says the source. "They're still friends."

The two met in 2004 and were engaged two years later in November 2006. Green, 35, who stars in Fox's Terminator: The Sarah Connor Chronicles, told PEOPLE as recently as November that he and Fox were hopeful for a small wedding or even elopement.

I have to admit I'm a little excited about this because let's all admit, she's a little too hott for him. I know I shouldn't say that but, that's just real talk.

Fox, 22, will next be seen in Transformers: Revenge of the Fallen.