The 25-year-old made the admission after backing out of her planned wedding to the 85-year-old Playboy founder this weekend, at his famed mansion.
It all started when reports emerged after the cancelled nuptials that the young blonde was having a secret affair with songwriter McGraw.
It's over: News that Hugh Hefner and his fiancée Harris had called off their wedding emerged today
Denial: Crystal Harris, left has strenuously denied claims she cheated on Hugh Hefner with Dr. Phil's son Jordan McGraw, right
McGraw was apparently seen 'kissing the blonde's shoulder and trying to hold her hand', according to Life & Style magazine.
But Crystal's representatives say the claims are completely false.
'That is absolutely not true,' Harris' manager Michael Blakely said. 'It's a complete fabrication'
Blakely said that the relationship's dissolution was an mutual decision.
'It was an amicable split up, and they will remain good friends,' he told the New York Daily News.
'Change of heart': Hugh Hefner tweeted that his relationship with Crystal was over
Harris also took to her website to explain her decision in a statement.'After much deep reflection and thought, I have decided to end my engagement with Hef,' Harris wrote.
'I have the utmost respect for Hef and wish him the best going forward.'
Quick demise: The couple seemed happy less than two weeks ago when they smiled for the cameras at the opening of the new Playboy Club in London
Rumours that Crystal was dating McGraw emerged quickly after it was revealed that she had had a change of heart about marrying Hefner.'The wedding is off and everything has been cancelled,' a source told RadarOnline.
'Hef is in shock. Crystal bailed and left the mansion at 11pm Sunday night,' the insider added.
Famous father: McGraw is seen here with his famous father Dr. Phil
News that Harris called off their wedding was confirmed today, when sad bachelor Hefner took to his Twitter simply writing: 'The wedding is off. Crystal has had a change of heart.'
It was first reported that the weekend nuptials were canned after the couple had a huge argument.
Sources at the mansion told Radaronline that after their fight over the telephone, Crystal decided to move her things out of the multi-million dollar home.
Hefner and his bride-to-be were scheduled to tie the knot this coming Saturday in a lavish ceremony.
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