Caparros was quoted by one newspaper as saying he simply hoped that Real would not "steamroller" his side.
However, the 59-year-old strongly denied ever making such a remark and slammed those responsible for the story.
"My experience tells me not to listen to the press, nor to listen to anything, but when there is a headline like that..." fumed Caparros.
"Do you think I could say those things? How could I motivate the footballers and the fans?
"Everybody who knows me knows that I don't give anything away to anyone - not even to my father who is in heaven.
"I have been involved in football for many years and it annoys me that people make up these headlines. The game is hard enough for us as it is."
Granada sit 14th in the Spanish top flight, having taken just one point from their last five games.
