The report follows the publication of a National Enquirer story, which claimed Deen, 66, threw her 57-year-old husband out of the house after discovering he had a mistress.
"This story is absolutely not true. They have never been closer. Michael adores her and Paula adores him. They are completely fine," a source close to the family told UsMagazine.com.
Deen saw her lifestyle empire crumble this year after she admitted in a deposition for a lawsuit she used the N-word, but later clarified it had been years ago and in reference to an African-American man who robbed her at gunpoint.
The confession sparked a media firestorm and, although Deen apologized for her behavior and insisted she is not a racist, she was fired by the Food Network and lost numerous product endorsement deals.