The 39-year-old Austin Powers star - who is famous for his 2ft 8in height - is seen passionately kissing Ranae in the short teaser clip posted on gossip website Tmz.com.
Ranae has lived with The Love Guru star for the past six months and is reportedly planning to marry the actor.
However, the aspiring model is less than happy about the footage emerging, and claims the home movie was stolen and illegally distributed without her knowledge or consent.
Confronted by photographers in Los Angeles yesterday, Ranae snapped: "Do I look like I should be smiling about this?"
It has been reported that celebrity porn broker Kevin Blatt - responsible for the worldwide fame of Paris Hilton's sex tape One Night In Paris - has purchased the footage and is in negotiations for its distribution.
Verne is so distressed by the footage's release that he has filed a $20 million lawsuit against Tmz.com, claiming they violated his privacy rights and infringed on his copyright and trademark by putting a teaser clip for the tape on their site.
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