The Empire star is said to be "devastated and angered" by the sensational claims, which come as the two suspect siblings in the case were released without charge.
The brothers, who were arrested for their alleged involvement in a homophobic and racially motivated assault on the 36-year-old, have accused Smollett of paying them to stage the incident.
The men - one of whom is Smollett's former personal trainer - claim they were hired and instructed to purchase the rope that was found round the actor's neck.
Speaking to the Associated Press, Chicago Police spokesman Anthony Gugliemi said they are now "fully cooperating with authorities" and the information provided by the brothers has "shifted the trajectory of the investigation".
Smollett, who has played Jamal on the Fox hit drama since 2015, responded to the shocking reports through a statement from his attorneys saying he has "now been further victimised" and stating "nothing is further from the truth".
According to CBS Chicago, an attorney for the brothers said the duo are acquaintances of the star who they know from a local gym and also from casual work on Empire.
The dramatic developments come weeks after Smollett presented himself at a Chicago medical facility around 2 a.m. on January 29 with injuries reportedly resulting from a hate crime.
Smollett told detectives he was set upon by two men near the entrance of Loews Hotel, where his attackers allegedly poured an abrasive chemical substance on the actor's face and wrapped a rope round his neck whilst shouting racial and homophobic slurs.
The former child star appeared on Good Morning America on Thursday morning for his first interview since the incident, becoming emotional and visibly distressed when recounting his ordeal.
"I want them to find the people that did it..I want them to stop being able to say 'alleged attack'," he told the programme of his wish to recover surveillance footage from the night in question.
"I want them to see that I fought back. And I want a little gay boy who might watch this to see that I fought back. It does not take anything away from people who are not able to do that, but I fought back. They ran off, I didn't."
