The Bundesliga giant has insisted that the Spanish power has not made an offer for the Poland international.
Sky Italia claimed on Thursday that BVB had accepted a 30 million euro offer from Madrid, only for Lewandowski to turn down the Spanish giants as he wants to join Bayern Munich; however, Watzke has stressed that Dortmund has not been in touch with the Santiago Bernabeu side over the 24-year-old.
"I can only say that we don't know anything about an alleged Madrid offer for Lewandowski," Watzke told Sport1. "At the moment, there has not been any contact with Real Madrid about Lewandowski. There have been rumors that Madrid are interested in Robert for a number of weeks now, but he has always been clear that he wants to join Bayern."
Watzke stated earlier this week that Dortmund will not allow Lewandowski to join Bayern this summer and he has once more stressed that the striker will not make the move to the Allianz Arena ahead of the 2013-14 campaign, regardless of the Poland international's claims that BVB promised him he would be allowed to move.
"There will not be a transfer to Bayern this summer," Watzke reiterated.
Lewandowski has a contract with Borussia Dortmund until June 2014, but he is desperate to leave the club this summer and follow in the footsteps of BVB teammate Mario Gotze, who has already sealed a switch to Bayern Munich.