Recent media reports suggested that Brazil legend Zico, now a Flamengo board member, was in discussions with Del Piero's brother-cum-agent Stefano about the possibility of a two-year stint at the Rio-based club.
However, Sydney CEO Tony Pignata confirmed that no talks took place between Stefano and Zico and that the club are close to extending Del Piero's stay for another season.
"Stefano told me yesterday he hadn't been to Rio, and has told me Alessandro is only in talks with us," he told The Daily Telegraph.
"He said it's pure speculation (about Flamengo), and he's coming here within the next week at which point I expect us to wrap everything up.
"We've said it several times, we want him to stay and he wants to stay. It's only a few marketing issues we have to resolve."
The former Juventus star has been in scintillating form for the under-achieving A-League club this term, scoring 10 goals in 16 games.
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