Prince Albert and his sisters released a statement after producers told a French magazine the Palace had supported the film, starring Nicole Kidman.
The Palace said the film contained “major historical untruths and a series of purely fictional scenes”.
The film, titled Grace of Monaco, is due for release next year.
“The Princely family wishes to emphasize that this film is by no means a biopic,” the statement said.
“It recounts one rewritten and needlessly <<glamorized>> page in the history of the Principality of Monaco and its family.”
The film follows the High Society actress in 1962 after she married Prince Rainier III, becoming Princess Grace.
It is said to focus on a six-month period when Monaco was in a heated tax dispute with France and director Alfred Hitchcock offered the former actress a chance to return to acting.
The Palace said it had been “surprised” when it received the script for the film, as it had “in no way been associated with this project”.
It added it had submitted to producers a number of requests for changes, however they were not all taken into consideration.
“The Palace of Monaco cannot accept that the producers of this film imply they have received Their Highnesses’ support in any way whatsoever, since this is not the case,” the statement concluded.
The film’s producer, Pierre-Ange Le Pogam, told AFP the production was meant to be a work of fiction.
“The palace was aware of the script and made requests for changes. We took most of their remarks into account, but not all,” he said.
“The film is not intended to tell the true story of the principality,” he added.
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