Jim Gianopulos, the chairman of 20th Century Fox, has denied rumours of that Avatar had a $500 million budget.
The movie is James Cameron's first film in four years and looks set to be one of the must see movies this Christmas.
But Gianopulos has spoke out to defend the movie and deny the figure that appeared in the New York Times.
In an interview with Reuters he said: "That's a ridiculous number. It has actually no relationship to the actual cost of the movie.
"However, he admitted that Avatar, James Cameron's first film since the record-breaking Titanic, was "quite expensive" to produce.
"There is no question about that. But viewed now, from the perspective of its completion and having seen it, it's a formidable work and money well spent."
The movie brings together and all star cast of Sam Worthington, Sigourney Weaver, Zoe Saldana and Giovanni Ribisi.
Set in the future, Jake, a paraplegic war veteran, is brought to another planet, Pandora, which is inhabited by the Na'vi, a humanoid race with their own language and culture. Those from Earth find themselves at odds with each other and the local culture.
Avatar is released 17th December.
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