Price, 33, and Penna called off their romance just days after he hinted that they would marry, reported Daily Mail online.
The split is said to be due to the language barrier between them, as Price does not speak Spanish and Penna has only a basic grasp of English.
After a heartfelt discussion through a translator, they both decided it would be best if the male model moves back to Argentina.
"It’s over. The truth is Leandro felt isolated being in the UK without any of his friends or family. He decided it would be a good idea to return to Argentina and see his family, and try to get work. She agreed it was probably for the best," a source said.
Penna appeared to get homesick after a recent visit from his family and he has gone back to Argentina after taking the decision of splitting with Price.
"Leandro decided it was time to take a break. And Katie didn’t disagree. Katie knew in her heart that it was coming. She’s being very adult about the split and says she didn’t see it as a long-term relationship that would lead to marriage and kids. But she will miss him. The language barrier was ultimately the problem for them," a friend said.
The couple met in February at Elton John’s Oscars party shortly after Price had split from her second husband, cage fighter Alex Reid.(PTI)