The EPL side have not made a bid for either of the BVB stars, according to the director, who has insisted his players are not for sale
Reports emerged on Saturday alleging that the English giants were told Gotze will be allowed to leave for a transfer fee of €59.5 million [£50m], while they were also preparing a €17.8m [£14.8] bid for Hummels.
However, Watzke quashed these allegations, and added that his players are not for sale at any price.
"There is no offer," the CEO told Liga Total. "And even if they bid €120 million [£100m], [Gotze and Hummels] would stay with us, because we don't want to sell!
"We want to play football, not to open as a bank. We want to make our five million fans happy, we can't do that by selling players."
Gotze's agent Volker Struth also quashed rumours, and affirmed his client's intention to see out his contract.
"We will have no talks [with other clubs]. Mario has a contract until 2014 and wants to honour it. There are no discussions with other clubs, not even with Bayern Munich," the representative explained.
Both Gotze (19) and Hummels (23) have contracts that expire in 2014. The two have been in high demand, with Arsenal having had a bid of around €30m [£25.2m] for the former in August. BVB have held firm, however, rejected that offer, as well as an approach from Bayern Munich for Hummels.