An article on the Sunday Mirror's website earlier said Richard Partington had quit, meaning he would avoid giving evidence at the town’s sex abuse inquiry.
Today the council said in a statement: "A story published online in today’s Sunday Mirror falsely claimed that 'Telford Council boss won't give evidence at child abuse inquiry after quitting £145k job'.
"This claimed that the council’s managing director Richard Partington, who it was announced on Monday is leaving the council, "will not have to give evidence” to the Independent Inquiry Telford Child Sexual Exploitation, which the council has commissioned.
"This is untrue and the Mirror chose to publish this without any council comment on this claim.
"The facts are that notwithstanding Mr Partington's departure from the council, he will continue to participate in the inquiry.
"The council has contacted the Sunday Mirror to make them aware of this and, as a result, they have changed their online story and now included the council's comment."
- Search for Telford & Wrekin Council's new chief executive begins
- Telford child sexual exploitation inquiry to look back 30 years
Mr Partington was appointed to his post in 2011 and the council said his departure was a mutually agreed decision.
Before being officially given the role, he acted as the interim chief executive.
He started his career in local government as an administrative assistant at North Shropshire District Council.
He was project manager for the creation of Telford & Wrekin Council as a unitary authority between 1996 and 1998.