Albert, who is the current ruling monarch of the Monaco, issued a joint statement with Princess Caroline and Princess Stephanie denouncing the project 'Grace of Monaco', the Guardian reported online.
"We have had absolutely no association with this project, which claims to be about the lives of our parents. For us, this film does not constitute a biographical work but portrays only a part of her life and has been pointlessly glamorised and contains important historical inaccuracies as well as scenes of pure fiction," the three royals said in a statement.
The Oscar-winning actress left a blooming Hollywood career to to become the Princess Grace by marrying Monaco's Prince Rainier III in 1956. One of the favourites of Alfred Hitchcock, Kelly starred in classics like 'Dial M for Murder' and 'Rear Window'.
Kelly died on September 14, 1982 in Monaco in a car accident after reportedly suffering a stroke. She was 52 at the time of her death.
The new film, slated to release next year, depicts Kelly's first few years in Monaco. The film reportedly centres on the period in 1962 when Monaco and France were in dispute, with Grace playing a vital role in helping to avoid a coup.
Directed by Olivier Dahan, the film also stars Tim Roth in the role of Prince Rainier.