The 22-year-old has been linked with a number of clubs over the past year but the Serie A side are currently rumoured to be at the top of the list of potential suitors interested in the Brazil international.
Luigi dismissed any notion of Inter having made a bid for Damiao and believes the Italian club do not have a hope of signing one of their star players.
“I can assure you that there is no chance [that Damiao will join Inter],” he told Radio Gaucha.
“As far as we know, there is nobody from Inter in Porto Alegre.
“There is absolutely nothing to talk about on this subject.”
The attacker has long been reported to be a transfer target for Tottenham, who look set to confirm Andre Villas-Boas as their new manager.