Hollywood legend Elizabeth Taylor is reportedly back home and recovering well following her battle with pneumonia last month.

The 76-year-old's publicist denied reports the actress was in dire condition prior to her release from hospital, where she was alleged to have suffered congestive heart failure and been placed on a ventilation machine.

A spokesperson for the star insisted prior to her release: "Ms Taylor is fine. The rumors ... about her health are dramatic, overstated and untrue," describing Taylor's stay as "precautionary". And according to People.com, the actress is fit and planning a holiday to Europe and Hawaii.

A source tells the website: "Ms Taylor is at home and happy - and busier than ever. She's living her life. She's been having dinner with friends. She's working. She never left. She's always been Elizabeth. And she looks fabulous."

Taylor - who suffers from diabetes and osteoporosis - has been plagued with health problems over the last few years. She was first diagnosed with congestive heart failure in 2004 and has undergone two hip replacement operations and the removal of a benign brain tumor in 1997.

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(This news article provided by World Entertainment News Network)