The 21-year old promising Swedish midfielder has been closely linked with a move to Ewood Park despite signing a four-year deal with Alkmaar in August and has doused any speculation of a move to the English Premier League.
"I am definitely not," Elm told Fotbollskanalen when asked if he would be signing for Blackburn in January.
"That's totally made up. I like it a lot in Alkmaar."
Elm joined the Dutch club from Kalmar but has struggled to become a regular first steam starter due to the fact he is ineligible to play in Europe after already appearing in the competition with the Swedes.
"It's a bit odd playing a game, and things go well, and then not being able to play in the Champions League," he added.
"And when things go well there, I can understand that the manager doesn't want to change it."