The former Australia captain resigned from his post last week in the wake of the team's first-round exit in the Caribbean and returned home at the weekend.
Australian newspaper Herald Sun reported on Friday that the 58-year-old had "feared for his safety after India's loss to Bangladesh at the World Cup - and the murder of Pakistan counterpart Bob Woolmer - but said he still loved cricket."
Woolmer, 58, was found dead in his hotel room in Kingston, Jamaica, on March 18, one day after Pakistan were upset by Ireland and knocked out of the World Cup.
"I never made that statement and nor did I feel that my life was in danger at any time during my stay in India," Chappell said in a statement released through the Indian Cricket Board on Friday.
Board president Sharad Pawar has suggested Chappell remains involved with the sport in India and indications are he will be asked to work in the development of youngsters at the National Cricket Academy.
However, Australian media have reported that Chappell is a leading candidate to fill the Australian Cricket Academy head coach role vacated by new national coach Tim Nielsen.