And Sharon is already envisioning a new future romance for Kelly.
"Let the auditions begin!" the 61-year-old host joked on Thursday's episode of daytime TV show The Talk.
"Matthew is a lovely guy. They had two great years together of fun and love, and for me, that's why engagements are so important. Engagements are a test run, aren't they? And so it didn't work for whatever reason, but they are still good friends and will continue to be. It's just not right for them right now."
A spokesperson for Kelly also confirmed that she and Matthew remain on good terms.
And apparently the Fashion Police host is happy with their decision to end their relationship.
"The split is amicable and the pair continue to have nothing but the utmost respect for one another," her representative told Us Weekly magazine.
"Kelly is looking forward to a new year full of fresh beginnings."
Although Kelly, 29, hasn't addressed the split directly, on January 8 she seemed to have alluded to their breakup in a Twitter post.
"its all about perception sometimes the bad things that happen in life aren't really bad at all especially when you learn something from it!" she wrote to her over 3.5 million followers.
Kelly and Matthew enjoyed the marriage proposal while vacationing in the Caribbean last summer.
The former couple met in 2011 at model Kate Moss' July 1 wedding to The Kills rocker Jamie Hince.
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