The director blames idle Internet users for the "gossip-mongering nightmare", revealing news about the tragedy spread rapidly last week (ends30Oct09) - as Palin and the Pythons were celebrating their 40th anniversary.
Gilliam is trying to make light of the saga, telling WENN, "It's true, his pet alligator just ate him; it was horrible!
"They're all dead; all the Pythons died horribly except me.
"I don't know where that rumour came from that Mike died. The web is such a gossip mongering nightmare. It was actually a very embarrassing moment because Mike thought it was real."