Veena Malik appears topless on the front of the December issue of FHM India, sparking outrage among conservatives in Pakistan - both for her nudity. and the reference to Pakistan's intelligence agency.
But Miss Malik has strongly denied posing for the lads' mag, with the 33-year-old star insisting the picture had been 'morphed'.
'I have never posed nude. I have never done anything like that ever. My manager and legal team is looking into the matter. We will take legal action against them,' Miss Malik told PTI, the Indian press agency.
FHM India's editor, Kabeer Sharma, insisted however that nothing had been doctored, and claimed that the magazine could prove the photo's authenticity.
Mr Sharma told the BBC: 'We have video footage of the shoot as well as emails from Veena about how she's looking forward to the cover.'
The image was revealed on FHM India's website, Facebook page and Twitter account simultaneously today.