Katherine Heigl and Shonda Rhimes at the Writers Guild of America on strike outside Paramount Studios. Los Angeles, Calfornia - 12.12.07

The actress, who plays Dr. Isobel 'Izzie' Stevens, sparked controversy last month (Jun08) when she refused to submit her name for the prize-giving.

She claimed writers on the hit show were not giving her enough good material.

And the ensuing row led to rumours she was to be axed - with bosses plotting a dramatic death scene for her character.

A source tells E Online, "It's not good there. Shonda is pissed. They're thinking of killing her off."

But the show's creator, Rhimes, has denied any knowledge of a possible exit for Heigl.

She tells E Online, "I haven't heard anything about that."

Source: WENN