According to The Mirror, the Tina McIntyre actress is regarded as one of the ITV soap's stalwarts.
Speculation circulated at the beginning of the week over whether Keegan would take a break from Weatherfield to appear on Strictly Come Dancing this autumn.
However, a source said: "We don't let our stars just sidestep away from their commitments here on the cobbles to go on Strictly, especially someone like Michelle who we value so highly.
"She is going nowhere and her current deal, which runs out towards the end of the year, will be renewed soon."
Meanwhile, a Strictly insider indicated that the performer was on producers' original shortlist.
"Michelle was one of a number of big names we were looking at. This year we only want huge stars," the informant claimed.
The star's agent denied the Strictly rumour on Wednesday, July 11.
Keegan, 25, has held her Corrie role since 2008.