It's Nearly Official: Naomi Watts and Liev Schreiber Expecting Baby?

We at the Glitter and Gossip offices have definitely heard the rumors recently, though this is the closest it has come so far to a confirmation. Last night, while actress Naomi Watts walked the red carpet for the 2007 Oscars, a rep for Escada, who designed her Oscar gown, issued a press release saying, in part, "The ESCADA gown set off her most precious new asset – the baby she is expecting with longtime boyfriend Liev Schreiber." Ooops.

Naomi walked the red carpet with her good friend, fellow AussieNicole Kidman. Liev has most recently been seen in a guest appearance on CSI. The couple is not married ... yet.

Photo from People.