Sky announced on Wednesday that Lou Adler, executive producer on the original film, would return in the same role, while O'Brien would co-produce.
But, speaking on Wednesday afternoon, O'Brien told the BBC: "I'm not co-producing it and I won't be involved in any way.
"The first I heard about it was when people sent me cuttings from US papers."
He later told BBC Radio 5 Live that his involvement had been announced "to suggest I've given the project my seal of approval".
The original was "a wonderful movie", he said.
"I don't know where they'll go with it really," he added.
"I've even heard that they're going to put new songs in.
"I wrote the book, the music and the lyrics.
"Where are they going to get the songs from? Who's going to do that? That's a bit strange isn't it?"
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