Davies, 25, signed a contract extension until 2030 in February 2025 before suffering a serious knee injury that ruled him out for most of last season.
He has since returned to fitness, scoring in Bayern's 4-2 Bundesliga title-clinching victory over VfB Stuttgart and making 19 appearances across all competitions.
Reports linking the Canada international to Manchester United were dismissed by Bild journalist Christian Falk.
"It is NOT TRUE: Manchester United have held talks over signing Alphonso Davies this summer. This hasn't been confirmed as of yet. I know Bayern Munich would be open to discussing a deal, on the condition that it was a good deal for the club. That's because Davies has a really good salary — around €20 million — and he is often injured. Nevertheless, Bayern head coach Vincent Kompany is a keen admirer of Davies."
Sky's reporting makes clear that Bayern would only entertain an extraordinary offer and are not placing the left-back on the market. Davies earns around €20 million per year gross and is one of the highest-paid players in the squad.
Manchester United have been in the market for left-back cover given Luke Shaw turns 31 this summer and enters the final year of his contract.
Patrick Dorgu, signed from Lecce in January, has been used in a more advanced role. United's search continues but Sky's update suggests Davies will not be the answer.