Tania Clarence, the South Africa-born London mother who killed her three severely disabled children, is being allowed "home days" as part of her treatment, but has not been released.
Richard Egan, her lawyer, told The Times that reports that Clarence was now free were "nonsense".
Speculation that Clarence had been released just four months after being sentenced followed the publication of a picture of her outside the family's home in New Malden.
Egan said: "This is part of her treatment programme, to have days at home to reintegrate with her daughter (eight-year-old Taya) and her husband (Gary)."
After these "home days", Clarence would resume treatment at an undisclosed facility.
Clarence, 43, pleaded guilty to committing the murders while in the grip of a major depressive episode.