The study, released by the Institute for Scientific Information on Coffee in UK, noted that a Mediterranean diet, consisting of fish, fresh fruit and vegetables, olive oil and red wine, has already been associated with a reduced risk for development of Alzheimer's Disease.
The latest research suggests that compounds called polyphenols and caffeine can also be responsible for this protective effect - and these exact compounds are also found in high quantities in coffee, according to the study.
The study found that moderate coffee consumption was associated with a lower risk of developing dementia over a four year test period - by up to 20 per cent.
However, the effect diminished over a longer follow up period, 'express.Co.Uk' reported.
Both caffeine and polyphenols reduced inflammation and decreased the deterioration of brain cells - especially in the hippocampus and cortex, areas of the brain involved in memory, researchers found.