Grammy winner Nelly Furtado is engaged to sound engineer Demacio "Demo" Castellon, who worked on her hit 2006 album Loose, PEOPLE confirms. Their close friend, music producer Timbaland, gave a one-word reply when asked if the engagement was true: "Yes." The British Columbia-born Furtado, 28, told Blender in July 2006 she had a "secret boyfriend" of eight months, adding: "I just don't really talk about it. It's nobody famous or anything." Furtado has a daughter, Nevis, 3, with her ex-boyfriend, DJ and producer Jasper "Lil' Jaz" Gahunia. She and Gahunia split in 2005 after four years together, but Furtado told Blender: "We're fully active co-parents and really close friends."