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Daily consumption of coffee could slash risk of developing Alzheimer's disease, a new study claims.

The study by the Institute for Scientific Information of Coffee, found that drinking between three and five cups of coffee can cut risk by about 20 percent, Daily Mail reported. The report attributed the findings to compounds called polyphenols, which reduce inflammation and damage of brain cells, caused by onset of disorders like Alzheimer's.

"The majority of human epidemiological studies suggest that regular coffee consumption over a lifetime is associated with a reduced risk of developing Alzheimer's Disease with an optimum protective effect occurring with three to five cups of coffee per day," said Dr Arfram Ikram, an assistant professor in neuro-epidemiology at Erasmus Medical Centre Rotterdam, in a press release.

The findings of the study were presented during a satellite symposium at the 2014 Alzhemier Europe Annual Congress.

The report explained that consuming a Mediterranean diet comprising fish, olive oil, fresh fruit and vegetable and red wine reduces risk of Alzheimer's as the diet is rich in polyphenols. As coffee contains these compounds, it too can prevent onset of the condition.

"The findings presented in this report are very encouraging and help to develop our understanding of the role nutrition can play in protecting against Alzheimer's disease. Coffee is a very popular beverage enjoyed by millions of people around the world and I'm pleased to know that moderate, lifelong consumption can have a beneficial effect on the development of Alzheimer's disease," said Dr Iva Holmerova, vice chairperson of Alzheimer Europe.

However the observational study has not convinced all and raised calls for clinical trials before it can be proven.

Corroborating their findings, researchers quoted recent studies, including a four-year follow up study which found moderate caffeine consumption lowering risk of developing dementia. The study concluded that the effect did not last longer.