The 29-year-old's contract with Newcastle has expired and Olympiakos, along with Roma, had been rumoured to be interested.
But the Greek champions have dismissed the speculation.
An Olympiakos spokesperson told skysports.com: "This story is far from the truth.
"No contact has been made with Michael Owen or his agents and we do not intend to have any contact.
"Michael Owen is not one of our targets. We already bought the player we wanted from England and his name is Matt Derbyshire."