The Colombia international has emerged as one of the most lethal marksmen in the European game, with star performances for Porto in 2010-11 followed by an excellent first season with the Vicente Calderon club in 2011-12.
Falcao has won the Europa League twice in succession, leading the goalscoring charts, and was also on target on a regular basis last term in La Liga.
Chelsea have identified the South American as a possible replacement to Didier Drogba, who left the club this summer after his contract expired.
City are thought to be ready to shake-up their attacking options also, with temperamental pair Carlos Tevez and Mario Balotelli, and out-of-favour Edin Dzeko, all unsure over their futures.
However, the Spanish capital-city side have confirmed that they have no inclination of cashing in on their star striker.
“Falcao will remain here and any talk of an exit is misplaced,” Caminero told local press, translated to English by The Sun.
By Gareth McKnight