Police were called to the club's training facility on Friday amid claims that Chico had threatened Monk with a brick.
Despite admitting that the pair fell out, Monk insists that the details have been exaggerated.
"Recent media reports have blown everything out of proportion. Yes, we had words, but at no time was I threatened with a brick by anyone," he told the club's official website.
"Chico is a teammate and we stick together for the betterment of Swansea City and the fans. That it is the case throughout the squad.
"The matter has been resolved and we all remain united, whatever nationality we may be, because we wear the same club colours and that is the most important thing."
Swansea continue their FA Cup campaign on Saturday when they travel to Birmingham City in the fourth round.