The Spain international has been listed as a reported target for Real on numerous occasions since his arrival in Manchester from Valencia just over three years ago.
However, Silva was quick to rubbish the latest rumours when interviewed on Spanish radio station Cadena Cope.
"I'm very happy in Manchester and I think this is similar to what happens every year," the 27-year-old said.
"There are always rumours and, in the end, the player has to be calm."
Silva, who is currently on international duty with Spain, signed a new five-year deal with City in September 2012.
"I renewed my contract because I am happy in Manchester," he added.
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