Babel was reported to have desired a move out of Anfield in this season's build-up to the World Cup because he allegedly felt that manager Rafa Benitez was not giving him adequate playing time to secure a spot on the Netherlands' roster for South Africa.
However, he now insists none of that was true, blaming a dodgy translation of a Dutch interview for the confusion.
"I didn't say any of those things," said the 22-year-old. "I did an interview in Holland and I don't know who in England got hold of it but it was the worst translation I have ever seen.
"The fact is I'm very happy here and I don't want to leave to go anywhere. I just want to concentrate on playing.
"Yes, there is a lot of competition for places at Liverpool but that's the same at every top club. It was like that when I was at Ajax and that isn't a problem for me.
"I heard about what was being reported when I was away with Holland.
When I got back to Liverpool I went straight to the manager and told
him it wasn't true. He accepted that and there is no problem."
Babel helped his cause on Saturday during a substitute appearance in which he provided the assisting cross for Fernando Torres's game-winning goal against West Ham United.
Jeremy Brown, Goal.com UK