The 30-year-old star wrote a damming open letter today after the record executive claimed that she broke into 'hysterical sobbing' when he demanded that her smash hit 'Since U Been Gone' be included on her album, Breakaway.
Kelly - whose stellar career was guided by Davis after she won American Idol - lashed out, saying: 'I refuse to be bullied and I just have to clear up his memory lapses and misinformation for myself and for my fans. It feels like a violation. Growing up is awesome because you learn you don't have to cower to anyone - even Clive Davis.'
Happier times: Record legend Clive Davis with his protege Kelly Clarkson in 2004. Today, she accused him of 'bullying' her.
However, Davis recalled that he didn't believe the material contained a number one hit and told the singer's manager he was 'out of his mind' to believe otherwise.
He also wrote about a meeting with Kelly in in which he told her that My December was “a pop album that still needs pop hits'.
But in a lengthy statement posted on Whosay, Kelly wrote: 'So I just heard Clive Davis is releasing a memoir and spreading false information about me and my music.
'First, he says I burst into "hysterical sobbing" in his office when he demanded Since You Been Gone be on my album. Not true at all. His stories and songs are mixed up.'
She said they rowed after Kelly insisted that she wanted more guitars added to the original demo track - and Davis did not, saying she eventually prevailed, adding: 'I couldn't be more proud of the life of that song. I resent him dampening that song in any way.
'But, yes, I did cry in his office once. I cried after I played him a song I had written about my life called "Because Of You."
'I cried because he hated it and told me verbatim that I was a "s****y writer who should be grateful for the gifts that he bestows upon me.'
'He continued on about how the song didn't rhyme and how I should just shut up and sing. This was devastating coming from a man who I, as a young girl, considered a musical hero and was so honored to work with.
'But I continued to fight for the song and the label relented. And it became a worldwide hit. He didn't include that in the book.'
Emotional: Kelly Clarkson is overcome as she picks up the Grammy award for best pop vocal album this month
Overjoyed: Kelly picked up her third Grammy of her career at the music awards ceremony in LA on February 10
She also accused Davis, currently the Chief Creative Officer of Sony Music Entertainment, of actively trying to 'sabotage' the album.
She said 'Well, first let me say, I've co-penned many of my "pop hits." Secondly, My December went platinum (It sold 20,000 less than All I Ever Wanted which followed My December.) Hardly a huge failure.
'Never Again, the ONLY single they released in the US from that record was a Top 10 hit.
'I am very proud of that and I have my fans to thank. But, again, what's most interesting about his story is what he leaves out: He doesn't mention how he stood up in front of his company at a convention and belittled me and my music and completely sabotaged the entire project.
Engaged: Kelly Clarkson and her fiance, Brandon Blackstock, beam at the Grammys earlier this month
Charttopping hits: Kelly Clarkson in her videos for Because of You and Since U Been Gone
Kelly, who is signed to RCA records, won her third Grammy award earlier this month for Best Pop Vocal Album for her fifth studio album, Stronger.
And the star, who is engaged to music manager Brandon Blackstock, finished her message by writing: 'Anyway, I love my job. I love my music. I love my fans. I love my label and all of my professional relationships… now. And I am grateful for Clive for teaching me to know the difference.
'Cheers to another amazing year.'