Mel C says speculation about her sexuality was the tabloid story which upset her the most.
In an interview Melanie Chisholm says she is ready to carve out a new identity, but she denied the band is splitting up.
The 27-year-old singer is in New York promoting her solo debut album Melanie C: Northern Star, which has received favourable reviews in America.
When asked what the worst thing a tabloid had printed about her, she said: "There's been lots of things written about me that aren't true. But something that's always been frustrating to me and very annoying is that they question my sexuality, which I think is nobody's business anyway.
"The fact is I'm not gay, and they try and brand me a liar when the fact of the matter is that they're the ones who lie. It makes me angry that they try to stereotype how a lesbian should look.
"When they first started was when I had short hair and I was quite muscular and I've got tattoos. They just said by my appearance that I'm a lesbian. "