Student Dawnette Knight told a judge that the Welsh film star's husband also gave her money.
The 32-year-old, who was recently deemed fit to stand trial despite taking a drug overdose in custody, has previously admitted being infatuated with Douglas.
But yesterday she told a pre-trial hearing in Los Angeles that he gave her £1,400, which police found in her purse, and suggested a romance between her and the Fatal Attraction star.
Zeta Jones's lawyer, Jay Lavely, dismissed the claim, saying: 'It doesn't deserve comment.'
During the raid last year, Knight told detectives she had so much cash on her 'because I was going to pay my bills'.
When Debra Archuleta, prosecuting, asked her where she got the money from, she replied 'Michael Douglas' - and began laughing out loud to herself in court.
Knight claimed police asked about her alleged affair with the 59-year-old actor.
'I said I'm not here to ruin anybody's marriage and he's married,' she added.
Zeta Jones, 34, says she received a string of death threats over 18 months.
Knight faces 25 counts of stalking her and making threats against her family. She denies the claims. If convicted she could be jailed for up to 19 years.