Iconic Hollywood director Steven Spielberg is not leaving DreamWorks, his spokesman said on Tuesday, denying a report on the online edition of celebrity magazine Radar.

"Radar's radar kind of bounced off an incorrect source," the spokesman said.

Spielberg's relationship with DreamWorks' parent, Paramount, a unit of Viacom Inc, has been the subject of intense speculation in recent months.

Radar reported on Tuesday that Spielberg was unhappy and leaving the studio he helped found 13 years ago, citing sources deep inside Viacom.

DreamWorks was acquired by Paramount Pictures in 2005 for $1.6 billion. Under the deal, Spielberg and partner David Geffen agreed to stay on with Viacom through the end of 2008. But there has been persistent speculation the two principals are unhappy and may choose to leave Paramount at the end of 2008.

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