The couple have been together since 2005 and are also now co-stars on the Summer Bay soap as Sneddon joined the cast late last year.
Rumours of the pair's happy news first circulated earlier this week, but it was finally confirmed on Home and Away's official website today (March 7).
A post on the site read: "It's true - we can confirm that Steve Peacocke and Bridgette Sneddon are engaged."
The actors first met while working together in drama school. While Peacocke has been busy with his soap commitments in recent years, Sneddon has concentrated on stage work.
Peacocke joined the cast of Home and Away in late 2010 and first appeared on screen as Brax in February the following year.
Sneddon's casting in the show was announced last December. While her first scenes are yet to air, it has been confirmed that she is playing the role of Sophie Taylor, a newcomer with a connection to the Bay.
Speaking to the Herald Sun last year, Sneddon commented: "It's been odd not seeing each other in the last three years after working together so much [during drama school]. I've just seen how much he loves his job and loves going up to Palm Beach.
"If he could do this job for the rest of his life, he'd be a happy man. He's just excited I get to experience that and likewise, I'm thrilled to be doing it."
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