The revelations are part of a British court case, in which a masseuse is suing a former employer, claiming she was fired following the incident with the unnamed superstar.
The actor, who cannot be named for legal reasons, is accused of dropping his towel and pleasuring himself, just moments before his wife went in for a massage with the same therapist, in October 2004.
But Costner, who spent his honeymoon at the resort with his bride Christine, is furious his name has been linked to the case.
His representative Paul Bloch tells the New York Daily News, "We find it unfortunate that Mr. Costner's name has been brought into what is essentially a dispute between a company owned by a good friend of his and a former employee--and that it would tarnish what was a wonderful time spent at this resort with his wife."
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