Prosecutors in New York are investigating a sexual assault case against former International Monetary Fund chief Dominique Strauss-Khan and have not yet decided to back off or continue to pursue seven counts of against him.

Last week, prosecutor for the District Attorney's told a judge that they had problems with their case after learning that the accuser had repeatedly lied to investigators.

It would have to be that I believed every word that came out of her mouth, and that I believe in the criminal aspect of what occurred, Joan Illuzzi-Orbon, Assistant District Attorney for the New York County District Attorney's Office told the Wall Street Journal.

Illuzzi-Orbon said DNA proves there is a sexual encounter, between the 32-year old Guinean chamber maid and Strauss-Kahn, according to the report.

She said that when prosecutors learned that their case may be taking a different posture, they made it known.

That this is somehow being chalked up as a loss is ludicrous. We triumph with the truth, she said.

She said prosecutors gathering any and all information about what happened at the suite in the Sofitel hotel in Mid-town Manhattan where the alleged attack took place.

The District Attorney's office hopes to reach a decision ahead of a July 18 hearing for Strauss Khan, the report says.