Earlier this month Alaba's father and agent was quoted in the Spanish press as saying "Madrid are really interested" in recruiting his son, but the player himself insists he is happy at the Allianz Arena.
"I know nothing about my father's interview with the Spanish media," Alaba said ahead of Austria's upcoming friendly with Germany on 2 June. "I asked him about it and he doesn't know anything either.
"There's nothing more to say on the matter. I'm very, very happy in Munich. I'll be here next season. I still have a lot to achieve here."
Alaba is one of the longest-serving members of the current Bayern squad. He joined the club aged 16, and later became the club's youngest debutant in a competitive match at 17 years, 232 days.
The Austria international has since made a further 300 appearances in all competitions for the Bavarian giants, winning seven Bundesliga titles, four DFB Cups and the 2013 UEFA Champions League, among others.
Watch: Alaba's top 3 free-kicks for Bayern Munich
Alaba, who turns 26 in June, is under contract with the record German champions until summer 2021.