Reports had claimed that the former Turkey Under-21 international was upset at the club's offer of a deal which would pay him less than new signings Danny Guthrie and Pavel Pogrebnyak.
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The player has publically reiterated his commitment to the Berkshire club, however, who could risk losing him for free at the end of the season if his contract is allowed to run down.
"There's nothing to believe in the rumours, I don't know where it's come from," Karacan told reporters.
"I've been here at Reading for eight seasons and looking to be here a long time further."
Karacan went on to hint that an agreement could be reached before the start of the new season, with Reading set to take on Stoke City on the opening day.
"Hopefully it will be sorted in the next week," he added. "I want to be a Reading player for a long time yet."