After yesterday's false reports that Katherine Heigl dropped out of contract negotiations, ABC has confirmed that Katherine will not be leaving Grey's Anatomy.

"Katherine is an integral part of Grey's Anatomy and its success. Fortunately, we have a long-term contract to ensure she'll be with the show for several years to come," ABC execs assured fans in a statement. "In recognition of her tremendous talent and value to the show, we recently approached Katherine with an offer to raise her compensation significantly above the terms of her current contract. We were surprised to see this gesture reported negatively in the press, and want to reassure fans that she will continue as Izzie Stevens."

In fact, Katherine is under a six-year contract with the show, so she'd be in a lot of legal trouble had she decided to drop out, E! Online reports. (Besides, Grey's is one of the hottest shows on TV -- leaving would be just plain dumb!)

Rumors about the contract negations arose yesterday when People reported that Katherine dropped out of contract talks over her salary, as she was allegedly "disappointed that [producer] Touchstone doesn't value her as much as her other costars, especially Sandra Oh and Isaiah Washington." So how did the rumor mill start up? A source for E! Online says the whole story was simply taken out of context and blown out of proportion. "Heigl's representation felt it unfair that she was still not being offered the same compensation as some of the other supporting actors are making," the source says. "And so, obviously, someone leaked the story to People." It just goes to show that you can't believe everything you read (that is, except when we're the ones writing it).