Rumours circulated that the Oscar-winner was retiring from acting at the age of 76 due to a memory-related illness.
But NBC journalist Maria Shriver has now confirmed that the claims are "100 per cent false", reported E! online.
"Nicholson is not suffering from any memory-related illness or dementia and has no current plans to retire. To the contrary, he is actively reading scripts and has plans to appear on the big screen once again," Shriver said.
Earlier reports stated that "The Shining star has no plans to appear on screen in the future.
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