Not only has the French striker rubbish the report, but the club have also assured they will be taking action against the newspaper.
"There has never been a problem for me at City," Anelka told the Manchester Evening News.
"The supporters have never been anything but behind me all the way, and I would go as far as saying that they are the best I have ever encountered.
"I gave an interview to 'France Football' in which I spoke about issues concerning being a footballer who is black.
"I didn't say, and have never said, that City fans have been racist towards me. In fact, I hold them in the highest regard."
Anelka's comments actually referred to his time playing in France and Spain, where reports have suggested he may return this summer. But the Frenchman has re-iterated his commitment to the Blues.
"It's true that I'm missing the confrontations with the big European clubs," he added. "The Champions League really allows you to measure yourself.
"But I'm a happy man. I do feel good at City. I was happy to see the whole gang again when we reported back for training. What the manager had to say was determined and reassuring."
City press chief Paul Tyrrell, meanwhile, confirmed that the club were not taking the News of the World report lightly.
"I would go as far as saying that the way the story was written was vicious, and we will be making representations to the News of the World and approaching the Press Complaints Commission to seek further advice," he told the MEN.
"Nicolas was talking about incidents that have occurred over his career, not at Manchester City.
"It appears that some sections of the media are not content with Nicolas Anelka being happy at Manchester City.
"As a club we are becoming increasingly frustrated at what appears to be a campaign to unsettle Nicolas."
This story is the latest in which Anelka has been misquoted after interviews with the French press, and Tyrrell added: "This is a good example of selective quoting enabling a story to have a totally different slant than was intended."