"I can confirm the Duke of York is not engaged to Monika Jakisic," said a spokesman for the prince on Sunday evening.
The Duke of York, 54, sparked romance reports when he enjoyed an evening out with the Croatian model at the Royal Thames Yacht Club in Knightsbridge last week.
The Twittersphere went further aflutter with news of their possible engagement when the 34-year-old brunette beauty posted a picture of a dazzling diamond ring on the internet.
"#thisishowitis" tweeted Monika along with the snap of the stunning ring – on top of a £600 restaurant bill.
The pair were first linked romantically after they were seen together celebrating the prince's birthday last month at Cecconi's restaurant in Mayfair.
Two days later, they were again seen together dining at private members' club The Arts Club in the West End.
Prince Andrew, the third child of Queen Elizabeth, divorced Sarah Ferguson in 1996 after 10 years of marriage.
Despite their break-up, the Duchess of York has continued to live in the same grounds of the Royal Lodge, the Queen Mother's former country home, with the Duke since their divorce 17 years ago. The couple have two daughters, Princess Beatrice, 25, and Princess Eugenie, 23, together.
Monika briefly dated George Clooney in October 2013.