Al Ittihad claimed last week that the 34-year-old Portuguese midfielder had signed for them on a one-year contract worth 4.5 million euros (5.9 million dollars) and would be arriving on January 5.

Inter coach Roberto Mancini has already dismissed talk of Figo's departure, and the club reiterated their desire to hold onto the former World and European Footballer of the Year in a statement posted on their webiste.

"There are no negotiations for the transfer of Luis Figo to another club," read the statement on Thursday.

"The recent news of a possible transfer of the Portuguese midfielder is, therefore, completely groundless."

However Figo, whose contract with Inter runs out at the end of the current season, has played little under Mancini this season and could be tempted by the lure of another lucrative deal before retiring.

He retired from international football after Portugal lost to France in the World Cup semi-finals in July, but said he wanted to continue at club level for a season or two.

Inter, the current Serie A leaders, are currently in Bahrain and will face the Bahrain national team in a friendly match this coming Saturday before flying back to Italy.