Reports earlier this week suggested the Istanbul club had a 10million euro bid accepted by Inter and there was strong speculation in Turkey today that the deal had been done.
Galatasaray have responded by confirming a deal is in place with Inter while adding there was no agreement yet with the 28-year-old Holland international.
"The transfer of Wesley Sneijder has been agreed between Inter and the club and negotiations are ongoing with the player," a statement on the club's official website read.
On Friday, Sneijder's agent Soren Lerby had said a deal could be done as early as Saturday.
Quoted in the Gazzetta dello Sport, Lerby said: "The talks started (on Thursday) and (yesterday) a delegation from the club arrived to meet him.
"Now the decision lies with him. Anything is possible in football and Turkey is fast becoming a hot destination.
"If everything goes to plan the deal will go through. We will wake up tomorrow and everything will be more clear."
Sneijder has cut an isolated figure at the San Siro this season, making just five league appearances and publicly refusing to accept a two million euro wage cut.
Turkish Super Lig leaders Galatasaray are on a three-week winter break and eager to add Sneijder to their ranks before next week's trip to Kasimpasa.