Blackwell said in the Yorkshire Evening Post: "I saw the reports yesterday evening but nothing will happen with him today."
Viking are keen to hold on to Hangeland until the end of the Norwegian season, which finishes in October, with the club lying four points off the top of their division.
Reports yesterday suggested Leeds would sign the 24-year-old today and allow him to remain in Norway for the remainder of Viking's campaign, but Leeds will wait until later in the season before deciding whether to renew any interest in a player who has also caught the attention of Everton and Manchester City.
Blackwell was still weighing up the possibility of adding to his squad today and he may also sanction a number of departures before the window closes tonight.