On Tuesday, it was reported that Kanaka, who was undergoing treatment at the Palliative Care Hospital in Alappuzha, Kerala for cancer, died after the treatment failed to cure the disease.
Late in the evening, Kanaka called a press conference at her residence here to clarify rumours about her death.
"I'm not dead yet as I have been quoted by some media channels. I'm perfectly healthy. I don't have cancer and neither have I had the scare! The last time I was in Kerala, it was in 1992 when I was shooting for a Malayalam film. I'm very much alive! These are nothing but speculations," Kanaka said.
She also said this was neither a publicity stunt.
"I don't think anyone would fake their death, not even film stars. I have stayed away from cinema for personal reasons, but I'm likely to return soon. I have been getting offers, but I'm waiting for the perfect role," she said.
Kanaka, who rose to fame with 1989 Tamil blockbuster debut 'Karakattakaran', is the daughter of yesteryear actress Devika.
Since her mother passed away in 2002, Kanaka has been away from filmdom.
In the Malayalam film industry, she worked with superstars like Mammootty and Mohanlal. In fact, Shaji Kailas' 2000 hit film 'Narasimham' saw her sharing the screen space with the both of them.
Her other Malayalam films include 'Vietnam Colony', 'Golanthara Vartha' and 'Pingami'.
She is known for several hit films such as 'Godfather', 'Periya Kudumbam' and 'Jallikattu Kalai'.