i have a friend who ive known for years, but i fell out of touch with him because my boyfriend didnt like him .

Your boyfriend probably didn't like him, because he detected you fancied him.

ive always had strong feelings for him and still do. about 2 years ago i got back in touch and we regularly txt and phone each other .

i recently went out with him and a few friends , one of our friends who is gay says hes gay but im not sure ive asked him and he says hes not .

Gay blokes are not always a good judge of who is gay.  I've been asked out by gay blokes before and I'm 100% straight.

when we were out we danced a little he bought me most of my drinks , we were getting ready to leave and go on somewhere else i went to look for him and when i found him he hugged me round the waist and said i love you.

That is a pretty courageous thing for him to say.  I wouldn't say he loved you properly though, because it sounds as though you haven't got together yet.  Men often get confused about what love is, you can't love someone if you hardly know them yet.  Nevertheless he must be really fond of you to make that statement.

and kissed me a few times on the cheek. he held my hand and we went on somewhere else.

Very good!

on the way to a friends house he held my hand in the taxi and when we got there he kept looking at me every time i looked at him he was looking at me,

Good that sounds very synchronised, like you were mirroring each other.  Like both your feelings were matching each other.

when i spoke to him the next day he said he had a good night and wouldn't change a thing,

That's a very nice thing to say, and he made the effort to say it.  Very brave, because a few women would then either go on to take advantage of his devotion by being overdemanding and treating him like a slave (believe me, women do that, get a man hooked, then start to take the piss). Or would ditch him, because they would think he is too desperate.

does he like me cause im confused ?

I wouldn't be confused at all.  Everything you have said has been positive.  He has made it plain simple for you to understand, he likes you and has a good time when he is with you.