Milan president Silvio Berlusconi has admitted to being an admirer of the former Inter Milan full-back.
On the Santon rumours, Pardew said: "He's had a terrific season. I don't know about from Inter to AC, how that's going to work.
"I think he is quite happy being in a Newcastle jersey and he's learning his trade - he has still got a lot of improving to do."
Pardew has also sought to assure Toon supporters that the club is doing all it can to strengthen the squad.
"There is no doubt that in the background we are beavering away trying to get some players in," he added.
"We have got (Mathieu) Debuchy in, which I think is going to be very important to us, and we are working very hard.
"I know there are loads of names being thrown about, but it's a waste of time asking me because I'm not going to answer. But we are certainly working hard."