Bild quoted Caine, 80, as saying "one must have serious concerns" for Connery, 83, who is "no longer in full control of his senses" and has suffered "noticeable" memory loss."
But Caine told Britain's Daily Record Monday the account isn't accurate.
"It's completely preposterous, bull [expletive,]" Caine tole the Record.
"This stuff about Alzheimer's is just nonsense," he said. "I can only assume that someone has twisted my words or got the wrong end of the stick."
Caine admitted he hasn't seen Connery for a couple of years, but says they keep in touch.
"My wife and I spoke to him on the phone on his birthday this week and he was very well," Caine said. "He was fine, in complete control of his senses and his usual self. I have no idea where they are getting this stuff from. I know Sean was quite ill a year or so ago. But he is much better now and it was never anything to do with his mental state."