Vialli's representative Athole Still told the BBC Sport website: "The suggestion that he will be Leeds manager is absolute nonsense."
Vialli turned down an approach last week from Millwall player-boss Dennis Wise to join him at the New Den.
The Italian was also linked with the Fulham job after Jean Tigana's sacking, but Chris Coleman was eventually named as the Frenchman's successor.
He is currently busy training for his Uefa coaching badge.