Olise scored 22 goals and provided 26 assists in 51 appearances for Bayern Munich last season and has continued to impress at the World Cup, performances that fuelled persistent speculation linking him with a move to the Bernabeu.
"There is absolutely no chance that Michael Olise will leave during this transfer window," Falk said on his Bayern Insider podcast. "The club has made that very clear to the player."
Real Madrid's own statement had already made clear they were not in negotiations for Olise, though Falk left the door open to a future move.
"Maybe Bayern will win the Champions League next season and then Olise decides he wants a new challenge. You never know," Falk said. "But for now, he's staying.
"If an opportunity arose in the future, Florentino Perez has already promised Herbert Hainer that he would get in touch before taking any steps involving the player or his representatives."
The understanding between the two presidents reflects the close relationship between the clubs, with Falk suggesting Perez's earlier remarks about eventually signing Olise were a light-hearted comment rather than a serious statement of intent. Bayern are meanwhile working on a new contract to keep Olise at the club until 2031, which would nearly double his current wages.
Real Madrid have already made several additions this summer, including Ibrahima Konate, Denzel Dumfries, Marc Cucurella and Bernardo Silva, and continue to be linked with further reinforcements including Alessandro Bastoni and Enzo Fernandez as Jose Mourinho looks to strengthen his squad. Signing Olise had been viewed by some at the Bernabeu as the final piece of a rebuilt forward line alongside Kylian Mbappe and Vinicius Junior, but for now those plans will have to wait.
Olise's contract situation gives Bayern little urgency to negotiate even if their stance were to soften, with the winger tied to the club until 2029. His form for France at the World Cup has only strengthened his reputation as one of the game's most sought-after attacking talents under head coach Vincent Kompany.