The 'No Light, No Light' singer confessed that she is baffled by suggestions that she is a member of the alleged secret society but joked that she is flattered to be associated with other big-name stars.
"That's ridiculous. Really? So people [think that]?" she asked MTV News upon hearing the reports.
"I heard Jay-Z and Beyoncé were [members of the Illuminati], so I don't know how I feel about it, because I think Jay-Z and Beyoncé are the most incredible artists ever, so in a weird way, it's slightly complimentary. But also completely ridiculous. I'm definitely not [a member]. It's just not true."
Welch recently confessed that she is "freaked out" by the success of Florence + the Machine but grateful for the support of her fans.
She has said that her latest LP, Ceremonials, was influenced by a variety of musical genres including soul and hip-hop.
Watch Florence + the Machine's video for 'No Light, No Light' below: