It had been claimed that the former Chelsea boss was being considered by the Portuguese Football Federation (FPF) to take charge of their Euro 2012 playoff against Bosnia-Herzigovina.
"That is one big lie," he told reporters. "It does not make sense. It is clear to me, to the federation and to Madrid that it is impossible.
"No-one has thought about it. There has not been any contact and this story should be over already."
Mourinho's Madrid side take on high-flying Real Betis on Saturday.