The Brazilian playmaker is in the last season of his current deal with the powerhouse A-League side and his future remains uncertain, with the club and player as yet unable to come to an agreement over new terms to extend his stay.
A report in The World Game on Thursday claimed talks were on the verge of breaking down, but Muscat has strongly rejected that assertion.
"The talks are on-going and they're healthy," he said.
"They're healthy discussions. There's certainly no issues as was reported yesterday, falsely.
"The whole article was a joke if we're honest. The dates were wrong. The lack of research was staggering in the article. Obviously someone's got to put their name to it. So that's disappointing.
"But from my perspective, I've got a very good relationship with Gui and the discussions are on-going."
Finkler, not selected in Victory's AFC Champions League squad, is a certain starter against Sydney FC at AAMI Park on Saturday night.
While Victory's valuation of the Brazilian's services is yet to satisfy the player and his representatives, there is also the question of how the forward will fit into Muscat's tactics next season, when the arrival of striker Besart Berisha as international marquee is likely to prompt a change in formation.
