Reports that SYLVESTER STALLONE’s late son SAGE  was dealing drugs are  dead WRONG!

In the days after Sly Stallone’s son, Sage, was found dead in his home, there were reports that the 36-year-old producer might have been dealing drugs, because of large amounts of empty prescription bottles that were discovered at the scene, BUT there is no evidence that he was doing so.

"Neither the Los Angeles County Coroner's Office, which is handling the bulk of Sage's death investigation, or the LAPD has uncovered any information that would even remotely suggest that Sage was a drug dealer," a source close to the situation told .

"First of all, if Sage was dealing, why would he leave so much evidence around? Drug dealers just don't operate like that. Secondly, Sage didn't need the money and his inner circle of friends is adamant that he didn't drink, or use drugs."

As The ENQUIRER previously reported, Sylvester Stallone's oldest son was discovered unresponsive at his Studio City home two weeks ago, dead from an apparent drug overdose. Prescription pill bottles were found in Sage's bedroom but it didn't appear that it was a suicide.

"There were a number of prescription bottles found at the scene but it did not appear to be suicide and no note was found," a source had said.

Sage's cause of death is still pending until the toxicology results are made public.

"It's looking like Sage's death was caused by an accidental overdose of prescription medication. Sage had five teeth about a week before he died and that could have been a contributing factor in his death," an insider revealed.