Benfica’s David Luiz is their No.1 target but with the Blues struggling to agree a fee with the Portuguese club, Kjaer is thought to have been lined up as an alternative.
The Denmark international left Palermo for Wolfsburg last summer and the 21-year-old has continued to impress in Germany.
But his agent, Mikkel Beck, insists Chelsea are yet to approach the Bundesliga club regarding a January switch.
“We haven’t heard anything from neither Wolfsburg nor Chelsea,” Beck told Onside.dk.
“We are concentrating on the fact that Simon is happy to play for Wolfsburg and has three-and-a-half years left on his contract.”
Kjaer moved to Italy in July 2008 at the age of 19 and has already won 15 caps for Denmark, boosting his reputation at last summer’s World Cup.