Could not find "gitignore" in any of your source paths creating an app using "rails new sample_app"

Guys,
I am running into this error when running "rails new sample_app". This
used to work before and not sure what changed in my environment. Any
help is appreciated.

ruby@ramak-ubtu:~/temp$ rails new sample_app
      create
      create README
      create Rakefile
      create config.ru
Could not find "gitignore" in any of your source paths. Your current
source paths are:
/usr/local/lib/ruby/gems/1.9.1/gems/railties-3.0.7/lib/rails/
generators/rails/app/templates
ruby@ramak-ubtu:~/temp$

--RamaK