Wenger was thought to have been tempted by Paris Saint-Germain with a contract worth £10m a year over three years - £3m a year more than he is on at The Emirates.
But Hill-Wood told the Daily Star: "I think this is complete nonsense - in fact, I know it is complete nonsense."
Wenger has a season left on his Gunners deal and has stated numerous times he will always honour his contract.
Hill-Wood added: "He is not about to change that.
"He is happy as Larry and the whole thing is complete rubbish."