The left-back has been repeatedly linked to a move to Spain in recent months, however, as his father and agent left the door open to a summer move last month when he claimed Madrid's interest is "no secret".
However, Alaba has dismissed talk of him heding for the Allianz Arena exit, as his future remains in Bavaria for the time being.
"I'm staying at Bayern," he told Bild. "I have a contract until 2021. I'm feeling very well in Munich, there's nothing more to say about it."
Bayern crashed out of the Champions League at the semi-finals after losing 4-3 to Madrid on aggregate, making it five years since they last sealed the European crown.
But Alaba is sure his side can bounce back eventually and go all the way in Europe's most prestigious club competition.
"With our squad we have absolutely the potential to continue to get very far in this competition," he added, insisting the issue is not down to the coaches the club have appointed.
"Our bosses at Bayern have shown over the past few years how much experience they have in putting together big teams that have also been successful in the Champions League."