Disney have issued a statement over the photos of Miley Cyrus posing topless with just a sheet covering her modesty, laying the blame on the publication that issued the pictures.

The snaps, taken by renowned photographer Annie Leibovitz for Vanity Fair magazine, have regretfully been lambasted by the Hannah Montana star who describes them as embarrassing.

Adding to the controversy, Disney released a statement blaming Vanity Fair for purposely exploiting the teen, stating: "Unfortunately, as the article suggests, a situation was created to deliberately manipulate a 15-year-old in order to sell magazines."

Miley’s parents Billy Ray and Tish were reportedly on set all day, with her father even appearing in some shots with her, but left before the ‘nude’ photographs were taken.

However, a source close to the actress revealed to People: "Miley's grandmother and her teacher were there when she shot it. Annie convinced them it was going to be artistic. Her parents are mortified. They know this is a learning moment for Miley.

"The photo suggests that she is [naked], but she is not. She is covered by a sheet, and beneath the sheet she is clothed. Originally, she was in a flesh-colored tank top but was asked to remove it."

Beth Kseniak, a spokeswoman for both Vanity Fair and Leibovitz, told the New York Times: "Miley's parents and/or minders were on the set all day. Since the photo was taken digitally, they saw it on the shoot and everyone thought it was a beautiful and natural portrait of Miley."

The recent photo scandal follows pictures that surfaced last week of the teen idol posing provocatively for the camera.

See the Vanity fair snaps here.

Is there a difference between art and smut? Which category do you think Miley falls under? Be sure to leave your comments below.