Reports from Spain suggested that the Champions League holders had travelled to Vienna to meet with Alaba senior, fuelling speculation that the 22-year-old could be on the move at the end of the season.
Alaba, however, has stressed that no meeting ever took place before adding that the left-back is happy with life at Bayern.
"It's not true that I met with a Madrid delegation. There was never a meeting," Alaba's father told Kicker.
"There is absolutely no reason for us to speak with other clubs. David is very happy in Munich."
The versatile defender himself, meanwhile, has also insisted that he is not thinking about a potential transfer.
"I am feeling very well here. I am not even thinking about a transfer," he said.
Alaba has a contract with Bayern until June 2018.
The Austria international has been a key figure at the Allianz Arena so far in 2014-15, scoring five goals in 29 appearances in all competitions.