The 73-year-old actor, after hearing of the allegations through various news sources including Variety and Deadline, decided to get ahead of the story and go on the record in an in-depth interview with Deadline.
According to reports the woman is alleging that the Oscar winning actor used 'colourful' language in front of her, as well as alleging that he masturbated in front of her.
The woman reportedly worked at Douglas' production company in the 80s and he claims the woman is possibly making the allegations as a spiteful reaction to her firing over 30-years ago.
Deadline reports that as soon as Douglas caught wind of the shocking allegations, he called a journalist at the Hollywood Reporter and told them the story was 'a complete lie, fabrication' and had 'no truth to it whatsoever.'
After the Hollywood Reporter declined the story, the woman reportedly went to Variety, and Douglas has made claims that she is 'shopping' around her story.
Douglas told Deadline, 'I’d confess to anything I thought I was responsible for. And it was most certainly not masturbating in front of this woman. This reeks.
'I would have respected if she had reached out to me any time over these years, to share her pain or concerns and I would have been the first one to respond. But this, going directly to the newspapers or whatever you want to call them, it just reeks of something else.
'I’m upset. It wasn’t the new year I had anticipated. I’m having a hard time understanding it. I’m very grateful to my family and business associates around me. I’m fearful, I have jobs going with studios who all seem to be supportive at this time.;
He finished, 'I’m hurt, really hurt and offended and I wonder if people realize when you do something like this, it hurts a lot more than just one person.'
The woman has not yet responded to Douglas' statement.
This article originally appeared on New Idea