The former Romania defender is reported to be in advanced talks with Premier League strugglers Palace, who have been without a manager since Ian Holloway departed over four weeks ago.
Palace co-chairman Steve Parish revealed on Thursday that the club hope to announce a new manager by the weekend.
He told Sovetskiy Sport: "Dan works for Dinamo. He is not talking about leaving, he is not torn.
"He is an honest man and there is nothing to hide. Petrescu himself doesn't even himself where the rumours are coming from."
Meanwhile, Palace caretaker manager Keith Millen admits he is surprised it has taken so long to appoint Holloway's successor.
He told the Croydon Advertiser: "I am a little surprised (with the length of the recruitment process).
"But I am pleased in that it is a reflection of how I am doing that the chairman is fully confident that he can leave it in my hands."
"We need to be planning for the next three or four games, which are big for us," he added.
"It is a good time for someone to come in with no game this weekend, and the more time a new manager has to work with the players and get his ideas across the better.
"But I am enjoying working with the guys – they are in good shape and they are training well.
"I have plans in place for the next couple of days, which is what the chairman has asked me to do with no game this weekend.
"And if the chairman asks me to prepare the boys for the Hull game, I would be more than happy to do so."
