The Belgian was a reported target for the Spanish champions earlier this summer with his agent Jan de Visser suggesting so but Jol has poured cold water on that by firmly stating that Jose Mourinho's club did not make any contact.
"I spoke to his agent and I said to him it's not the cleverest thing to do, to speak about players," said the Dutch tactician.
"There was no offer on the table (from Madrid) and hopefully the situation will stay as it is. Hopefully Dembele will stay here."
However, Jol did confirm that there was a bid from an unnamed Premier League rival but it was nowhere near Fulham's valuation.
"There was one low bid from one Premier League club, very low," he added.
"Moussa is quite happy here. He wants to play here and if something happens, we will have to wait."