It emerged earlier that the Enstone based team's long-time chief designer has left Renault, not long after speculation linked him with a switch to Ferrari.
Confirmation of Densham's departure had been reported by Greek website gocar.gr. Ferrari's current chief designer is Athens-born Nikolas Tombazis, and Densham worked closely with Fernando Alonso in his championship seasons.
But a source at the publication insisted on Tuesday that the Ferrari gossip is wide of the mark, as Densham has stepped down for personal reasons and intends to retire.
Deputy Martin Tolliday has taken over 56-year-old Briton Densham's role at Renault.
07/04/11 (GMM) Renault has lost an important member of the Enstone based formula one team.
Following the departure of Ferrari's technical director Aldo Costa earlier this year, we reported speculation that Renault designer Tim Densham is linked with the famous Maranello based team.
Confirmation of Densham's departure is now being reported by Greek website gocar.gr. Ferrari's current chief designer is Athens-born Nikolas Tombazis.
"We have taken stock of the situation together with Stefano Domenicali and his staff," Ferrari president Luca di Montezemolo told La Gazzetta dello Sport last Friday.
"We are doing everything possible to improve the performance of the car as is clear from the last couple of races. We know where we are going."