There had been reports of a £10million fee but O'Neill told the Birmingham Mail: "It's news to me. We haven't even discussed it with Liverpool and there would be no point. He's on loan and that's in black and white. There's nothing in any agreement for any price at all."
O'Neill added: "It's almost as if people haven't written about Scott Carson for a week or two, so they write the story again.
"Maybe it was somebody who was watching Match of the Day last weekend, saw him get sent off and thought it was time to write this story again."