But the club are considering taking legal action against the newspaper which reported the rumours.
"To suggest I have been offered a job out there is absolute rubbish," insisted Houllier.
"I took a phone call from someone in Australia asking me for my advice, and even asking if I would go out there to give my help.
"My reaction was that I would go only if they invited the team as well. I told them to contact Liverpool and ask for them to give their permission for me to offer the advice they wanted."
Liverpool press officer Ian Cotton said: "It is nonsense to suggest Gerard has been offered a job to run their Academy.
"What has happened is that the Australians have approached him asking for advice in setting up their new Academy. That does not involve the offer of a job.
"Gerard has said that they must approach Liverpool first before he can take it any further, and so far that has not happened."
"Bearing in mind the success Gerard had running the French Academy, who better could the Australians turn to for advice?"