Rabbi Ovadia Yosef, who heads the ultra-orthodox party, told party Chairman Eli Yishai that he never made the statement about Kadima, founded by Prime Minister Ariel Sharon, reports Ha'aretz.
The rabbi was further quoted as saying: "Had I wanted to say such things, I wouldn't be ashamed of doing so."
Yosef had recently said that anyone voting for Shas in next week's general elections is ensured of a spot in heaven, the report said.
A Kadima spokesman said: "Whoever votes for Kadima is voting for hope and for Sharon's policy, and is ensuring that Israel will be a better place. That is the real paradise."
Separately, Ynetnews.com reported that Yosef has said he didn't establish Shas for gaining political power but to spread the Torah among Israelis.
Notable deaths of 2014 [PHOTOS]