The 18-year-old has impressed with Schalke in the Bundesliga 2 over the past year.
He is the club’s youngest-ever debutant and goal scorer, playing 16 times for the senior team this past season.
“Unfortunately, there are many false reports about Assan in circulation," his father, ex-Burkina Faso star Alassane Ouedraogo told Sky Germany.
“The fact is there was never a commitment from Assan and us to FC Bayern, although we had had a well-paid contract from FC Bayern ready for signature for months. The idea and perspective were more important to us than Bayern’s financial possibilities.
“We knew Bayern’s current situation and of course followed it closely. Bayern have now informed us openly and honestly that they do not want to afford a transfer of Assan this summer for various reasons.”
He continued: “Assan recently turned 18. We are grateful and proud of the great interest in our boy. But we have a valid contract with Schalke 04 and will not make any hasty decisions.
“The next step is incredibly important for his personal and footballing development. The financial aspect is not decisive, but primarily the idea and trust of the future coach and those responsible.
“We will continue to work together with Schalke 04 to find a great solution for the club and for Assan. Assan has Schalke in his heart, I can assure you of that.
“We have not yet made a commitment to any club. Not just from Bayern. Many clubs, especially from the Premier League, have been very interested in Assan.
“There are teams from England who would like to sign Assan directly for their professional team in the summer. We will make the right decision soon.”