In an interview published on Friday he said he would meet Liverpool club officials to discuss the proposals and has said that he would be happy to fund Liverpool's £80m stadium plans.
The club have denied any negotiations have taken place, although they have reportedly received an invitation to play a friendly in Libya nexy May.
"Contrary to reports in the press, there has been no discussion with Mr Gadaffi or about Mr Gadaffi investing in the club," said a club spokesman.