Demetriou is alleged by Crikey.com to have said that the Kangaroos "played into our hands" by rejecting the Gold Coast package and that they would be out of business "within six months".
Demetriou, however, strongly denies the allegation via a spokesman.
"The only thing the correspondent got right is that Andrew had breakfast in a South Melbourne cafe with Brendon Gale. Andrew certainly didn't talk about the Kangaroos in those terms and any suggestion he did is complete rubbish," the spokesman said.
Gale, like Demetriou, also denies having discussed the Kangaroos in the reported manner.
"It didn't happen and if it had have happened, I'd be very concerned because we're talking about 42 jobs," Gale said in a radio interview with SEN. "It looks like the AFLPA is complicit to put the Kangaroos out of business, and that's just rubbish."
Kangaroos chairman James Brayshaw does not give credence to the article.
"We're not going to comment on hearsay from a private conversation," said Brayshaw.
"I would hope that if Andrew had anything to say about our footy club that he'd pick up the phone and ring me."
Amidst the denials by Demetriou and Gale, journalist Charles Happell, who broke the story, stands firm on his claims.
"They are impeccable sources and I trust them implicitly," Happell said. "I'd pit my credentials against anyone in terms of my integrity."