The Germany midfielder, who has failed to show his best form since joining from Bayern Munich last year, said Monday there was no truth to stories in British and Spanish papers that he had discussed a move to Real Madrid.
"I am very happy in London professionally and for my family," Ballack said. "I have no interest in leaving Chelsea and I have had no contact with Real Madrid whatsoever."
Madrid coach Bernd Schuster is reportedly interested in signing Ballack and Netherlands winger Arjen Robben from Chelsea.
Ballack sat out Chelsea's Community Shield defeat to Manchester United on Sunday and is set to miss the start of the season after having ankle surgery in the offseason.
"I am frustrated by my injury at the moment, but I am working hard to be fit and hope to be back very soon to join my teammates," Ballack said.
He joined Chelsea a year ago on a free transfer after the west London club won its second straight Premier League title. The Blues won the FA Cup and League Cup last season, but finished second in the league to Manchester United.