Magath was dismissed by Fulham last Thursday after a dismal start to the season left the club bottom of the Championship following their Premier League relegation in May.
The German's tenure at Craven Cottage was beset with problems, with rumours of player discontent.
Former Fulham defender Hangeland has hit out at the three-time Bundesliga winner's methods in the past and reports in the British media focused on an incident where Magath suggested an alternative method to treating a knee complaint using cheese.
Magath confirmed the story, but feels the now Crystal Palace defender has embellished the truth in order to put himself in the limelight.
"I wanted to take the time to write to you regarding recent reports and statements made by a former Fulham player Brede Hangeland," Magath posted on his official Facebook page.
"His portrayal of what was actually said, is so far from the truth, that it becomes laughable. He had an injury to the knee and I mentioned that he could try using an old technique of wrapping the knee with quark, which is used to decrease the inflammation.
"I would never tell a doctor how he should manage the injury to a player, but it seems that this story has been wrongly told and blown completely out of context.
"I would like to make it clear that Hangeland's statements are completely wrong and I must compliment the German press, who always ask first before writing such nonsense.
"It seems to me, that often players who are not performing on the pitch and are not in the spotlight, will make such ridiculous accusations.
"A world class player in the mold of Michael Ballack or Raul, would never ever make such statements, class speaks for itself."
Magath also hit out at suggestions that he mismanaged the playing and coaching staff at Fulham.
"I would also like to mention my apparent tough handling of my squad and staff," he continued.
"Steve Wigley a former employee and ex-coach of Fulham and current coach of Notts Forest, who worked with me at Fulham stated recently, 'I liked Felix, he was during my time with him, very good to me`.
"It is very important in my profession to be judged objectively, as I can imagine all of you would also expect.
"I have no problem with constructive criticism, but malicious gossip just goes too far in my opinion. And I will most certainly defend myself against a defamation of character, which is put out to damage my reputation."
