Athole Still insists there has been no contact with City or potential buyer Shinawatra about the prospect of the former England coach becoming the club's new manager.
However, Still re-affirmed that the role would interest the 59-year-old Swede, who is a "top-class international coach".
Eriksson is believed to be in the running to replace Stuart Pearce, who was dismissed at the end of the season after a disappointing campaign.
It is understood that City suitor Shinawatra has not yet decided on a manager should his takeover come to fruition.
According to reports, the former Thai prime minister's £120million bid for the club is imminent.
Shinawatra and his team are still looking at a number of managers and no decision has yet been made despite reports to the contrary.
Still would appear to back up that statement and told Sky Sports News: "There has not been any kind of meeting or contact between Sven-Goran Eriksson, myself or anyone purporting to represent us with either Thaksin Shinawatra himself or any of his representatives, or anyone purporting to be.
"It's just nonsense and I haven't the vaguest idea where these stories come from - but I can tell you categorically it is absolutely untrue.
"There has been no contact whatsoever and to say there have been meetings is rubbish.
"I don't believe it's coming from Manchester City, it's certainly not coming from us and I can't see why it would be coming from Shinawatra.
"Someone's seen a whiff of a rumour and given it arms and legs. It's laughable."
Eriksson is keen to return to work and Still added: "He is a top class international coach who has done it for clubs in three different countries - and I'm sure he could do it with Manchester City.
"He'd be interested in a club like them but at the moment nothing is happening - that's the absolute truth."
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