Reports in Denmark had suggested that the Manchester City keeper had turned down the opportunity to spend a spell in Scandinavia.
Elfsborg sporting director Stefan Andreasson has made no secret of his desire to land a new keeper, with Schmeichel and former Fulham ace Antti Niemi believed to be in his thoughts.
However, Michael Johansen claims no contact has been made with the City man.
He does admit that a loan deal would be off the cards as Schmeichel is registered in the Blues' Uefa Cup squad, but claims the youngster remains keen to find a route out of Eastlands in an effort to find regular first team football.
Injuries"Andreasson claims Kasper isn't interested. I must reject that," Johansen told Bold.
"The situation is that Kasper can't join them on loan and they haven't held any discussions with Kasper Schmeichel.
"There must be some kind of miscommunication.
He added: "It can't be done. Manchester City have no interest in letting him go out on loan.
"They have registered him as one of their three goalkeepers for the Uefa Cup and if they get any injuries, they do not want to be left without a back-up goalkeeper."