Loop corrections in double field theory: non-trivial dilaton potentials

It is believed that the invariance of the generalised diffeomorphisms prevents any non-trivial dilaton potential from double field theory. It is therefore difficult to include loop corrections in the formalism. We show that by redefining a non-local dilaton field, under strong constraint which is necessary to preserve the gauge invariance of double field theory, the theory does permit non-constant dilaton potentials and loop corrections. If the fields have dependence on only one single coordinate, the non-local dilaton is identical to the ordinary one with an additive constant.