According to the researchers of the study, the drink could improve the memory of those suffering from diseases of the brain or age-related forgetfulness, and may even prevent symptoms from appearing in the first place.
They tested their theory by giving a dietary supplement with the same properties of decaffeinated coffee to mice with type 2 diabetic mice.
The disease lowers glucose levels in the brain, causing impairment in memory and other brain functions.
As opposed to a placebo, mice treated with the supplement, for five months showed raised levels of glucose.
"This is the first evidence showing the potential benefits of decaffeinated coffee preparations for both preventing and treating cognitive decline caused by type 2 diabetes, ageing, and, or neurodegenerative disorders," he Telegraph quoted Giulio Maria Pasinetti, the lead researcher from Mount Sinai School in New York as saying.
Coffee is linked to a higher risk of heart disease and stroke, but Pasinetti said these effects were most likely due to the caffeine content in the drink.