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“Although I cannot disclose his location, he is neither in Chicago nor in a hospital,” John Theis, Headley’s lawyer, told news agency PTI.
Media reports had said that Headley was attacked by two inmates at a Chicago prison on July 8 and that he was admitted to an intensive care unit of a hospital in the city since then.
“I am in regular communication with Headley. There is no basis for the report in the Indian press,” Mr Theis said.
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He has been sentenced to 35 years in prison by a US court for the 2008 terrorist attack on Mumbai that killed more than 160 people.
Headley – who recced various Indian cities including Mumbai before the 26/11 attacks – was arrested in 2009.
On Monday, US authorities refused to comment on the reports.
“We are not able to locate information about this individual,” the Metropolitan Correctional Center in Chicago said in a brief email response to news agency PTI when asked about the reported prison incident.