According to his Easy Rider co-star Peter Fonda, 79-year-old Nicholson is “basically retired”.
“I don’t want to speak for him but he has done a lot of work and he has done very well as a person financially,” Fonda said.
“Sometimes people have a reason that you don’t know, and it’s not for me to ask. I don’t call him up and say, ‘Johnny,’ I call him Johnny Hop, ‘What are you doing?’ I would say, ‘How are you, how do you feel?'” he added to The Sun.
Nicholson’s representative told Express.co.uk: “He is still reading scripts and has not found anything that would be worth his talents. He is not an actor who just works for the money.”
Fonda and Nicholson have remained close friends since they starred alongside each other in the counterculture hit Easy Rider in 1969.
Several years ago reports that the Hollywood legend was due to retire were refused by his representatives.
In 2013 he dismissed rumours that memory loss was the reason he had been largely inactive on the acting scene.
During his 60-year onscreen career, Nicholson has won three Academy Awards and been nominated for nine more, making him the most nominated male actor in Academy Award history.
The 79-year-old also won the Cecil B. DeMille Award at the Golden Globes in 1999 for his outstanding contribution to film.
Although he appeared in an exclusive interview for HBO in 2016 discussing his friendship with Muhammad Ali, Nicholson has been mostly absent from the public eye, with his last major film, How Do You Know, coming out in 2010.
However, in an interview with The Hollywood Reporter last week, Caddyshack producer Jon Peters revealed plans for a remake of the eighties comedy classic, reportedly with Nicholson in mind to play the lead.