The nanny, who has not been named, claimed that the former governor never touched her or any other member of his staff inappropriately.
Speaking to TMZ, she said that Schwarzenegger "was a flirt, but he never touched me inappropriately, or anyone else that I could tell".
The staffer worked for Schwarzenegger and wife Maria Shriver at the same time as Mildred "Patty" Baena, who is believed to be the mother of the Austrian actor's illegitimate child.
It was previously reported that Shriver is planning to file for divorce following her husband's admission of infidelity. The star has allegedly pleaded for "one last chance" to save the marriage.
Schwarzenegger has placed his proposed return to acting on hold due to the scandal.