Will Smith’s team is denying a new allegation he and Duane Martin were caught in a dressing room having sex years ago … calling the claim “unequivocally false.”

A man claiming to be a former friend/assistant to the actor, Brother Bilaal made headlines Tuesday after an interview with Tasha K got some serious pickup. In the interview, Bilaal states he saw Will and Duane engaged in anal sex. A rep for Will denies the allegation completely, telling TMZ, “This story is completely fabricated and the claim is unequivocally false.” Further … a source close to the situation tells us Will is considering taking legal action following Bilaal’s remarks.