It had on Tuesday issued the statement to refute media reports about it providing or guaranteeing such financing.
Nikkei Asia had earlier reported the government approved a RM1bil loan as a lifeline to AirAsia Group.
The wire reported the loan will be made by a group of local banks under a government scheme to help companies deal with the fallout from the Covid-19 pandemic.
The question of funding has been touchy as the government has stated that it would not bail out any airline.
Last Saturday, Reuters reported a group of leasing companies rejected a restructuring plan put forward by Malaysia Airlines, bringing the state carrier closer to a showdown over its future.
The lessors claiming to represent 70% of the airplanes and engines leased to the Malaysia Airlines have called the plan "inappropriate and fatally flawed" and pledged to challenge it, according to the Reuters report.
AirAsia X Bhd is also in dire need of massive debt forgiveness from its creditors, or be prepared to shut its business down for good.
The low-cost, medium-haul airline, which has grounded all its flights due to the Covid-19 outbreak, is asking creditors and suppliers to forgo over RM63bil in liability and instead accept a maximum RM200mil in payment.