The New York Post claimed on Tuesday that a source told them Debbie was agreeing to forfeit her parental rights to Prince Michael, 12; and Paris Michael Katherine, 11; to the children's grandmother, Katherine Jackson, in exchange for the hefty sum.
However, an attorney for Rowe, told Access Hollywood that the New York Post story is "completely false."
On Tuesday, Access obtained a letter from Rowe's attorney to the paper, demanding the NY Post issue "an immediate retraction" of their story.
In their letter, Rowe's lawyer claim the NY Post story is bolstered with "blatant falsehoods" and was "concocted with reckless disregard for the truth."
They claim no agreement has been reached between Rowe and the Jackson family, that she has no intention to give "up her parental rights" and no decision has been reached related to custody or visitation.
Additionally Rowe's lawyers claim in the letter that she "has not accepted – and will not accept – any additional financial consideration beyond the spousal support she and Michael Jackson" agreed upon years ago.
A rep for the NY Post did not immediately respond to a request for comment from Access.
Radar Online reported an attorney for Katherine Jackson also claimed that the NY Post report is "false."
Rowe's plans related to the custody of her children were not clear at press time.
Earlier this month, she told KNBC Los Angeles reporter Chuck Henry that she planned to pursue custody of her kids. Hours later, however, a lawyer for Rowe said she had made no final decision on whether she would seek custody.
Rowe has been involved in court proceedings related to the guardianship of her children. The courts confirmed on Friday, July 10, that Rowe and Katherine Jackson had both requested a postponement of a hearing that was set to happen on July 13 concerning the temporary guardianship of Prince Michael and Paris Jackson. The hearing has been moved to July 20.
In related news, a paparazzo was arrested outside Rowe's ranch in Palmdale, Calif., yesterday.
Rowe called authorities around 4 PM on Monday.
According to the Palmdale Sheriff's Department, one photographer was detained for standing on top of an SUV while it was moving, in order to take a picture. He was arrested on an unrelated outstanding warrant, but later released.
The other paparazzo who was driving the vehicle was unlicensed, authorities said. He was given a citation and his vehicle was impounded.
Photographers have been a constant presence outside Rowe's ranch since the death of her ex-husband on June 25 at the age of 50.
Related Content from AccessHollywood.com:
PLAY IT NOW: Katherine Jackson & Debbie Rowe 'United In Fury'?
PLAY IT NOW: MJ's Former Bodyguard: What Kind Of Father Was Michael Jackson? (July 1, 2009)