It emerged on Tuesday that Swansea were keen to sign the versatile former France Under-21 international, who can operate on either the left side of defence or in attack.
Tabanou's agent Philippe Lamboley said: "The two clubs are in discussions, but I cannot confirm a bid has been made."
But St Etienne president Caiazzo has dismissed talk of Tabanou making a £3million move to south Wales and says the player will be staying put at the Stade Geoffroy-Guichard to help the club's push for Champions League football.
St Etienne currently lie fourth in Ligue 1, four points behind third-placed Paris St Germain.
"Tabanou will not leave this winter," Caiazzo told Eurosport.
"Even if we receive a good offer, he will stay at the club for sure."
Swansea, who sold top scorer Wilfried Bony to Manchester City in a deal which could climb to £28million through add-ons, are still looking to strengthen their defence despite the £5m capture of full-back Kyle Naughton from Tottenham last week.
Manager Garry Monk wants to provide competition for Neil Taylor as the Wales defender is the only recognised left-back at the club and he has also been linked with a January move for Norwich's Swedish international Martin Olsson.
Source : PA
Source: PA