The China international, who is currently injured, was reported to have been told by manager Bryan Robson that he would be free to leave the club whenever he wants.
However, the club have confirmed on their official website that he will remain a Blades player until his contract runs out in June next year.
"The club is still backing him to get fully fit and resume his career that has been hampered by injury," said the statement.
Injury has affected the 30-year-old since his move to Bramall Lane from Everton and he has only made one appearance for the club since arriving in July 2006.
"He has still maintained his place in China's squad and, owing to him being unable to play for any other English club due to his work permit, the Blades may well loan him to a Chinese club to enable him to get match-fit ahead of next summer," continued the statement.