It had been suggested that the former Cheers actress could be among the famous faces competing on the 11th season of the ABC competition next month.
However, writing on her Twitter account, she said: "Just a rumour... Imagine that. NOT doing DWTS this season... Way too chicken!! Maybe next season if Im invited again!!! (sic)"
Other stars who have been linked to the show include Bristol Palin, David Hasselhoff, Michael Bolton, Brandy and Bachelorette couple Ali Fedotowsky and Roberto Martinez, while Nadya "Octomom" Suleman has also expressed an interest in the series.
Ex-Arizona Cardinals quarterback Kurt Warner, Jersey Shore star Mike "The Situation" Sorrentino, Dallas Cowboys player Troy Aikman and Hills star Audrina Patridge are also rumoured to be in contention.
ABC declines to comment on casting rumours each season. The new cast will be revealed in a live press conference during the August 30 episode of Bachelor Pad, which airs from 8pm.
Dancing With The Stars returns September 20 on ABC.