The 27-year old striker is set to depart Peterborough United for the Foxes on a £3million move after reportedly rejecting the Canaries.
But Norwich chief executive David McNally wrote on his Twitter page that the Norfolk outfit's interest for the newly-capped Scotland international ended a while ago.
"For the record, CMS (Mackail-Smith) did not turn down Norwich City, despite what Barry Fry might say. Our interest ended in March," he wrote.
The comments from McNally come after Peterborough's director of football, Barry Fry, said that Mackail-Smith had rejected both QPR and Norwich.