Sane has been linked with a move to Bayern throughout the close season, having lost his starting place at City during the closing months of their domestic treble-winning season.
Bayern have made no secret of their desire to sign the Germany international, with boss Niko Kovac talking up the possibility of a deal going through earlier this week before later apologising for his comments.
Kovac was criticised by chief executive Karl-Heinz Rummenigge and director Hasan Salihamidzic for publicly discussing a move for Sane, who he described as a "dream" player for the club.
The transfer saga appeared to take another twist on Thursday as German outlets Kicker and Bild reported Sane had decided to join Bayern in a move worth in excess of €100million.
But the Bavarian giants moved quickly to shut down the rumours in a short message posted on their official Twitter account.
"News reports made today stating that Leroy Sane has decided to join FC Bayern do not correspond to the facts," the tweet read.
News reports made today stating that Leroy Sané has decided to join FC Bayern do not correspond to the facts.— FC Bayern English (@FCBayernEN) August 1, 2019
Bayern are in the market for a new wide player after losing Arjen Robben and Franck Ribery at the end of last season, while Serge Gnabry and Kingsley Coman suffered injury scares during this week's Audi Cup fixtures.
Sane has scored 10 goals in each of the past two title-winning Premier League seasons at City but is yet to accede to Pep Guardiola's wish for him to sign a contract extension