
We're told Liza "flipped out" when we broke the story earlier today that she was in talks to work out a deal in the $500,000 universe -- and now she's put the whole thing to bed.
An inside source at the show tells TMZ they're not giving up -- adding, "We want her in the Mackenzie Phillips/Gary Busey position -- already sober but strengthening her sobriety. We would not portray her as a drug addict."












