Newspaper reports on Tuesda were suggesting that Pompey wanted the outstanding fee due for Benjani, who moved to Eastland from Fratton Park in January last year.
A statement on the official Pompey website read: "Contrary to inaccurate newspaper reports today, Portsmouth Football Club would like to make it clear that they are not in negotiations with Manchester City for an early settlement in connection with the transfer of Benjani Mwaruwari.
A statement on the official Pompey website read: "Contrary to inaccurate newspaper reports today, Portsmouth Football Club would like to make it clear that they are not in negotiations with Manchester City for an early settlement in connection with the transfer of Benjani Mwaruwari.
"Both the terms of the deal and the transfer fee remain the same as in January 2008 when originally negotiated with Manchester City, who can confirm this.
"Pompey announced at the time that Manchester City paid half the agreed £7.75million deal up front, with subsequent payments to follow after 25, 50 and 75 appearances."