It was reported yesterday (Jan 23, 2007) that the former model had accepted a $60 million pay-off from the Beatles legend in order to keep details of their split out of court and away from the public eye.
Legal firm Mishcon de Reya, who are representing Heather, has now issued a statement denying their client has accepted the offer and insist Paul, 64, has not even made an offer to Heather, 39.
A spokeswoman said: "No offer has been made whatsoever at any time."
The now discredited settlement reportedly included Heather receiving the $8 million mansion in St. John's Wood, London, the couple shared and Paul's $12 million Beverly Hills property.
The estranged couple, who have a three-year-old daughter, Beatrice, are due in court next month to resolve a row over security.
Heather insists she is entitled to a professional bodyguard after receiving death threats, but Paul is refusing to pay for one.
