Napoli had been regarded as favourites to land Tottenham and Southampton target Damiao as they are in the market for a new striker with Edinson Cavani on the verge of joining Paris Saint Germain.
However, Luigi insists there has been no approach from Napoli for Damiao and that he expects the Brazil international to stay with Internacional for another year.
"No one from Napoli has spoken with me and I do not know if they are talking to his agent," Luigi told Italian station Radio CRC
"But if I like a football player, I'm going to talk to his club and not with the agent.
"For me there is no negotiation started for Damiao with Napoli, this must be a guess because, I repeat, Napoli have not mentioned this interest either now or in the past.
"How much is he worth? I do not know if I'm going to sell. He should remain here. I believe the player will be here for at least another year."