It had been mooted The Gunners were mulling over a £5million offer for the 20-year-old Serbia international this summer.
However, Kuzmanovic's agent Marko Naletilic says there is nothing in the story and that, if anything, the player's fee is likely to be of a higher valuation.
"It's a novelty even for myself at this stage in the market," Naletilic told firenzeviola.it.
"As Kuzmanovic's agent, I think that if there was really such an offer, I would have been informed.
"I might add that the valuation of the player is much, much higher."