Reports of a possible autobiographical film about the actor turned director emerged last month, after he made a casting call for a "James Franco type" and a "Lindsay Lohan type".
However, the Spring Breakers star tells E! that the reports are untrue, and that the film will not be based on his life.
"That's something I really didn't publicise," he explained. "We just put out a casting call for a Lindsay Lohan and James Franco type. People just saw the casting call and picked that up and made up a lot of stories about it."
The movie, which is as of yet untitled, will apparently be about "two Hollywood celebrities". Franco added: "It's really a project that's really under the radar for now."
Franco, who recently joined the Jason Statham action movie Homefront, is set to star in Oz: The Great and the Powerful later this year.
Watch a trailer for Oz: The Great and the Powerful below: