Arsenal manager Arsene Wenger has been assured he will be given money to rebuild his squad.
The Gunners' title defence has evaporated amid reports Wenger's requests to strengthen during the transfer window were knocked back.
Arsenal chairman Peter Hill-Wood told the Evening Standard: "That's absolute nonsense, Arsene was offered money.
"But he said he wasn't going to buy for the sake of it and would only act if he could find someone to add to the team."
Hill-Wood also denied that building Arsenal's new £357m stadium at Highbury Grove is siphoning off funds for team building.
But the Gunners' chairman said: "It is important to say that the new stadium finance does not impinge on Arsene at all.
"The cash is totally separate and it is not affecting our ability to buy new players at all.
"We have had bad luck with injuries and you have to live with them.
"Gilberto Silva has been missed and so has Edu. You are bound to miss someone of the quality of Gilberto Silva. He is a World Cup winner.
"We have lost a few games but we are still third in the league. We are in the knock-out stages of the Champions League and we are still in the FA Cup. That is not too bad, is it?"