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"Contrary to tabloid reports, there is no engagement. This was a complete fabrication," states Combs's rep.
Combs, 38, signed the singer, now 21, to his label Bad Boy Records, which released her debut album Cassie in 2006.
Still, as Ventura told PEOPLE July 9 at DJ Cassidy's birthday party in Manhattan: "We are not together, but we are definitely friends."
She also said, "We work hard together, so it makes a good combo."
JOSH & FERGIE: ROCKED BY SCANDAL
Did he cheat with a stripper?
Married less than a year, the couple denies an Atlanta woman’s claims that she and Josh had a fling
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