Katherine, 21, was spotted meeting the Hollywood macho-man at Cafe Roma in Beverly Hills for lunch, in a possible bid to patch things up, reported Daily Mail online.
Post the lunch meet, both the father-daughter duo was seen smiling as they left the place where Arnold also regularly meets his son Patrick.
Last month, Katherine had hinted that her father's scandal does not mean the end of their relationship. "Sometimes we forgive people because we want them back in our lives," wrote Katherine on the micro-blogging siteTwitter.
Arnold and his wife recently separated after 25 years of marriage, following the 'Terminator' star's confession that he had fathered a lovechild with their family housekeeper, Mildred Baena.
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