The Manchester City captain, 33, is out of contract in the summer and unlikely to agree new terms with the eight-time Premier League champions.
De Bruyne has attracted interest from Saudi Arabia but is thought to prefer a move to Major League Soccer.
San Diego, the newest MLS club, still have a designated player slot available.
While talks have been held with De Bruyne and his representative, San Diego insist nothing is imminent.
That's because they reckon the Belgian international's wage demands would be too much for their budget.
Tyler Heaps, San Diego's sporting director, said: "Those rumours, I don't know where they come from. I talked to the agent.
"The agent has many players, obviously.
"Every time I see it, I say, 'Are you the one that is saying all this stuff?'
"He's a fantastic footballer and he loves this area.
"He goes on holidays here every single year, but I'm not sure where that rumour keeps coming from.
"I've had conversations with him, but I'll tell you what, those wages won't fit our budget at the moment in terms of what his expectations are."
San Diego are MLS' latest club, having played their first ever game in February.
They are yet to lose a game and sit second in the MLS Western Conference.
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