There were reports that Varun would be headlining the film, which originally featured Rajkummar Rao.
When asked if he would be a part of "Stree 2", the actor told reporters, "No, it's false."
He was speaking at a special event of "Kalank" at Ishq 104.8 FM, here.
Varun's upcoming multi-starrer "Kalank" opens in cinemas on April 17, a week before the mammoth Marvel project "Avengers: Endgame" hits the screens worldwide.
When asked if he feels the superhero film will hamper the box office prospects of "Kalank", Varun said the audience is kind enough to go and watch both the films in theatres.
"Our film is coming out nine days before ('Avengers'), even internationally we are getting a big release. Nine days is a lot for 'Kalank' to be seen and liked by people. These days, if people like a film, it works. So if they like 'Kalank', it will continue to run.
There is enough screen space for both these films to run." PTI