Adult entertainment company Vivid Entertainment claims to have a sex tape of Iggy Azalea -- only the 'Fancy' rapper denies that it's of her.

According to TMZ, Vivid founder and co-chairman Steven Hirsch has seen footage of what he believes to be Azalea having sex with an ex-boyfriend, apparently offering her millions to release it.

“Iggy has proved that she’s an amazing talent. If there is any tape out there that can rival that of Kim Kardashian, this one is it," Hirsch reportedly said in a statement, via ONTD. (Vivid is the same company who distributed the Kim Kardashian, Pamela Anderson and Farrah Abraham sex tapes.) "We are conducting our due diligence and if we are satisfied with our review, we will definitely try to make a deal to distribute the tape."

However, Azalea and her team are not only claiming that the video is not of her (and if she doesn't sign off on it, the company cannot release it) -- they are allegedly ready to sue over the footage, TMZ reports. Yikes.

UPDATE: Iggy Azalea has tweeted about the alleged sex tape and has said the following:

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