Media reports claimed Audigier and the "Jon & Kate Plus 8" star were hammering out a deal during the weekend.
"Christian is absolutely not starting a kids' clothing line with Jon," Audigier's representative told Usmagazine.com. "As of right now, there is no clothing line in the works between them at all."
Gosselin, who frequently wears Ed Hardy clothes on his show, reportedly was spotted hanging out with his 22-year-old girlfriend Hailey Glassman on board Audigier's yacht in St. Tropez in the French Riviera during the weekend.
Gosselin and his wife, Kate, recently announced plans to divorce.