Former Leeds boss David O'Leary, now in charge of Aston Villa, was reportedly linked with a move for Smith.
"He's a great little player, but the story is completely untrue, " he told the club's official website. "I've spent my summer budget on Thomas (Sorensen) and Gavin (McCann) and I'm perfectly happy with the way I've spent it. "From here on, we're just looking forward to starting the new season at Portsmouth on Saturday."
Leeds chairman Professor John McKenzie also assured fans "there's not a chance in a million" he will sell Alan Smith.
McKenzie insists he has no intention of allowing the striker to follow the likes of Jonathan Woodgate, Harry Kewell and Lee Bowyer out of Elland Road, even if a massive transfer fee was on the table.
McKenzie told Sky Sports News: "I can tell you here and now there's not a chance in a million he is going, I'd say not a chance in 20 million. There's absolutely no way Alan Smith is leaving this club. He will be there in September, as he always is, playing for this club. I can tell you 110% he will be playing for Leeds United when the transfer window is closed. I've said before you don't sell the printing machine if you are running a printing business. I am committed to not selling the best player for Leeds United if they want to play for Leeds United.
He is is not going anywhere. He's been a fantastic asset to us and he's absolutely critical to our future plans. He's a symbol of what Leeds United is all about."