"With regard to this particular news item, we wish to clarify that it is not correct," Jet said in a statement to the stock exchange.
The Economic Times, citing unnamed sources, reported on Wednesday the airline was in advanced negotiations to sell the stake to Temasek.
Separately, a Jet executive said other reports of fund raising were also incorrect.
"Everything reported in the papers is false and incorrect," Saroj Datta, executive director at Jet Airways, told Reuters.
The Mint and Business Standard papers reported on Wednesday the airline was in talks with Abu Dhabi state-owned Mubadala Development Co for funding of 10 billion rupees.
Shares of Jet Airways closed down 2.14 percent at 184.80 rupees in a weak Mumbai market.