OK! magazine had claimed the actress planned to roll out three collections over the next two years, the first of which would be aimed at toddlers.
The 'Katie Holmes for Armani' range would then release a line for older children, with women's clothing and handbags following in 2010.
However, her representative swiftly moved to quash the rumours, saying: "She is not designing a children's line for Giorgio Armani."
Holmes has reportedly been arguing with husband Tom Cruise over how to celebrate daughter Suri's second birthday.