Solihull-based businessman Gianni Paladini reportedly submitted an improved £30m bid for the club earlier this month.
No deal has yet been agreed, but Paladini has claimed he is currently analysing the club's books in the hope of concluding a takeover by the end of next week.
But acting Birmingham chairman Peter Pannu, currently in Honk Kong with club owner Carson Yeung, said: "There are no active negotiations with the group involving Gianni Paladini or any of his associates.
"Should there be any agreement reached, there shall be formal announcements made in Hong Kong and also in the UK. I would urge that only official information should be relied upon and not rumours or speculation."
Former QPR chairman Paladini insisted on Wednesday that he was keen to secure a deal as soon as possible to avoid a possible exodus of players when the transfer window re-opens.
"We want to get a deal done very soon because we don't want to lose any players in January," he said. "I am hopeful that we can get something agreed within the next 10 days.
"I still believe Birmingham can get into the play-offs and our intention is to sign four or five players in the transfer window to strengthen the squad."
"We have spent a lot of money trying to get this completed and are currently looking through the books. Our intentions in buying Birmingham have never wavered, we want it done, and we are keen to get it all sorted by the end of next week."