Porto president Jorge Pinto da Costa has revealed that goalkeeper Iker Casillas has been offered a year-long extension to his contract.
The 34-year-old joined the Portuguese side from Real Madrid last summer after being released from the Bernabeu.
Porto are currently third in the Primeira Liga -- six points behind leaders Benfica -- and Da Costa was reportedly quoted in Spanish paper El Confidencial labelling the signing of Casillas as a "complete fiasco."
However, Da Costa insists any reports of a rift are untrue and says the Spain international has been offered fresh terms which will see his deal extended until 2018.
On the reports of a fall out with Casillas, Da Costa told Porto's official website: "That news made me laugh, as it states that I had dinner at the home of a great fan of the club, and a friend of mine, Jose Manuel de Mello.
"The problem is I have never even met the gentleman, and, according to what I was told, he passed away a couple of years ago, unfortunately."
He added: "We reached an agreement with the agent that represents the player in order to extend the contract with Casillas for another year, after the next one.
"Now it's on him to decide, the deal is done on our end, we told them to sign whenever they want to."