Souness, who spent a time as a player at White Hart Lane, has been repeatedly linked with the mangers job at Spurs following Glenn Hoddle's sacking.
"It seems the re-kindling of an old story and I can only reiterate that we have had no approach from Spurs, nor would we welcome one," Blackburn's chief executive John Williams told the Rovers official website.
"Quite the contrary, we would rebuff any approach. We want Graeme to remain here at Rovers.
"He continues to do a great job for us and is only just over one year into a new four-year contract.
"When the Spurs issue was raised on the eve of our trip to Turkey, Graeme dismissed the speculation and at no time has he intimated that he is anything but perfectly happy here at Ewood Park."