"We're friends. He's cool, yeah, he's cool," Kendall told Guiliana Rancic on the red carpet at the American Music Awards on Sunday.
"You go out with one person, you're automatically dating them."
Her younger sister Kylie Jenner added, "It's very hard to have friends of the opposite sex."
Kendall was certainly dressed to impressed the star-studded event, where, coincidentally, Harry and his One Direction bandmates were performing.
The teen brunette stepped out in a cutaway white dress that showcased her toned stomach and long legs. She had accessorised with an eye-catching necklace, matching clutch and nude heels.
Harry and the rest of 1D, meanwhile, were coordinated in black and grey suits as they arrived for the event.
Just one day earlier, the 20-year-old singer has been a little more transparent when asked about a potential relationship with Kendall.
"I mean, we went out for dinner, but no, I guess," was his response when quizzed by Piers Morgan.
Pushed further, he replied, "Dunno" when asked in a romance could be in the works.