Massimo Moratti is keen to hold onto the 28-year-old amidst rumours that Barcelona are preparing a bid should current first-choice goalkeeper Victor Valdes leave Camp Nou
Speculation has linked the Slovenia international with a move to Barcelona, who are looking for a long-term replacement for Victor Valdes beyond 2014, although the player's agent has denied that a bid was in the offing.
Moratti has now made it clear that the Serie A side have no plans to allow Handanovic to leave the club, pointing instead to the need to strengthen their ranks in midfield.
"Handanovic will stay," the Nerazzurri chief told reporters. "We don't need to replace a goalkeeper of this level; we probably need a midfielder instead.
"I also read the newspaper report, but I read a lot of things that aren't true; I can't deny all of them.
"I don't think there's anything to it."
Handanovic moved to Inter from Udinese in 2012 for a fee reported to be in the region of €11 million (£9.3m).