Reports have suggested Arsenal are lining up a move for Montolivo as a possible replacement for Cesc Fabregas should the Spaniard leave for Barcelona this summer.
Montolivo has caught the eye for Italy at the World Cup and a number of clubs have been credited with an interest in the 25-year-old but the player's agent, Giovanni Branchini, insists the midfielder is happy with life at Fiorentina.
"Aside from the fact that if negotiations were ongoing I would not be telling the press, these rumours make me laugh," Branchini said.
"This news is totally made up. Montolivo is good enough to be linked to Arsenal but not at this stage while he is busy with the Nazionale, halfway through the World Cup.
"Don't you think it's strange that these rumours came out just before the New Zealand game? Probably some papers needed to fill their pages.
"The same thing has happened with Sebastien Frey. I said he is not going to Aston Villa, but pundits keep on talking about it.
"It's just normal that at this time of the year, with the World Cup going on, people talk about players. But people should have a bit of common sense too."