“Blake is absolutely thrilled and so is Ryan,” the source tells PEOPLE.
A rep for both actors had no comment.
Lively first sparked rumors of a possible pregnancy when she was photographed reshooting scenes for her upcoming film The Shallows. Dressed in a wetsuit, the mom-to-be did her best to keep her baby bump hidden behind a robe and a surfboard.
But both Lively, 28, and the Deadpool star, 39, have been open about their desire to have a big family. “I do want to just enjoy this moment,” the former Gossip Girl star told PEOPLE shortly after welcoming her baby girl.
“But I also feel like my first child is going to be the oldest sibling to the next kid, and that may change with each and every year. I’m looking forward to how one baby influences the other, and to my family as a whole, to every single chapter.”
Although the new mom told PEOPLE she didn’t feel like the birth of her firstborn was a “massive change,” Reynolds joked the sheer exhaustion from life with a newborn took some time to get used to.
“Our baby, in particular, is, we think, allergic to sleep,” he joked in March 2015.
RELATED: Ryan Reynolds says he fell in love with Blake — while on a double date with someone else!
Despite the sleepless nights, Reynolds, the youngest of four boys, couldn’t be happier to finally be the dad of a daughter.
“Having a daughter was a dream come true for me,” he told PEOPLE in February. “I never admitted it out loud, to myself or my wife, but I really wanted a little girl.”
— Anya Leon