Bayern Munich chief executive Karl-Heinz Rummenigge insists a swap deal involving David Alaba and Leroy Sane has "nothing to do with reality".
The futures of both Bayern utility man Alaba and Manchester City winger Sane remain unclear as the two are on deals that run out in 2021.
The noise surrounding Austria international Alaba, 27, has only intensified since he reportedly hired a new agent, with Real Madrid, Barcelona and Chelsea all mooted as possible destinations.
Sane, who is yet to play in the Premier League this season due to a knee injury, is a long-time target for Bayern and the Bundesliga leaders could reignite their interest once the transfer window reopens, though a simple swap deal involving Alaba has been dismissed by Rummenigge.
"As I've heard, rumours are circulating that we would like to hand David Alaba over to Manchester City in exchange for Leroy Sane," he told TZ.
"In addition, I say very clearly: This is Grimm's Fairy Tale and has nothing to do with reality."
On the suggestion a swap had been proposed by Alaba's agent, Rummenigge added: "I would like to say very clearly that this is not an option for Bayern at all, we are not in the bazaar."
Alaba is one of a host of long-serving players whose current deal with Bayern expires after next season.
Manuel Neuer, Thiago Alcantara and Thomas Muller, all of whom had been in fine form before the Bundesliga campaign was suspended due to the coronavirus pandemic, are also coming to the end of their contracts.
"I would like to emphasise that we are currently only talking to players whose contracts expire in 2021," Rummenigge said.
"So, with Manuel Neuer, Thomas Muller, Thiago, David Alaba et cetera. They all have great merits for FC Bayern, that has to be taken into account."