The Spain international is no longer an undisputed starter at Stamford Bridge following the arrival of Antonio Conte as manager during the close-season and has made just five Premier League starts this campaign.
His diminished status has led to speculation Fabregas is keen to leave the club and the Chinese Super League side were rumoured to be among the 29-year-old's admirers.
And despite the transfer window in China remaining open until the end of February, Shandong Luneng have made it clear they have no intention of moving for the former Arsenal and Barcelona man.
"Yikes! What a super competent agent we have. But Fabregas is not our cup of tea," a tongue-in-cheek post on the club's official Weibo account reads.
"Please, for God's sake do not spread the fake news. Shandong Luneng will not buy another foreign player this season. Our coaching staff have already made elaborate arrangements for our foreign players.
"In the meantime, we will remain committed to producing home-grown talents for the Luneng academy. How about bringing up our own Fabregas..."
Fabregas has a contract with Chelsea until June 2019.