Speaking to Turkish-football.com Altıparmak said: “I never had an offer from Galatasaray, it is just a rumour.”
Turkish newspaper Yeni Şafak. claimed that City rejected an offer from Galatasaray to loan Ünal.
The Istanbul giants were reported to have made a loan offer for Ünal as they continue efforts to strengthen their attacking line.
Ünal is familiar with Galatasaray having grown up in Turkey and scoring his first competitive goal against the Lions.
The Turkish international striker became the youngest player to ever score in the Süper Lig when he netted against the Lions aged 16 in 2013.
Ünal joined City on a £2 million move last month on a four-year deal but the Citizens have decided to loan him out to gain first team experience.
The young striker did not have a work permit to play in England so has been loaned to Genk in Belgium where he is expected to play regularly next season.