The 23-year-old striker has attracted plenty of attention after a prolific season during which he found the net 28 times, but his manager has refuted reports that a deal is done
Austin hit 28 goals in 40 games for the Championship side, leading to attention from Steve Bruce's Premier League new boys.
But Dyche has rubbished speculation suggesting the 23-year-old has signed for the Tigers.
He told the Burnley Express: "There's been no agreement reached.
"The noises are just the same because there's people hovering and clubs interested, but nothing is appropriate for us at this time so he's getting on with pre-season for us.
"There's no reason to think any different until it becomes any different. He's fine, he's in good shape, listening to what we think is appropriate and he's enjoyed himself since coming back for pre-season."