The 'We Found Love' singer initially responded in April to the claims that she was being considered for the role by saying it would be a "huge" responsibility to play Houston.
Rihanna provided an update during a chat with MTV News, when she revealed she has never been approached to star in the proposed film.
"[It was] just rumours. I never heard anything about that," she clarified.
The singer went on to express her admiration for Houston, whose 'I Will Always Love You' ranks as her all-time favourite song.
"It was really inspiring, and it made me develop a passion for music, so really, she's partly responsible for me being here in this industry," the star commented.
Houston was found dead at age 48 in her Beverly Hilton hotel room in February.
The late star will posthumously receive the Billboard Millennium Award at Sunday's (May 20) Billboard Music Awards.
Watch Whitney Houston perform 'I Will Always Love You' below: