England skipper Farrell linked to Racing switch - reports
Both L'Equipe and specialist rugby newspaper Midi Olympique claim the 32-year-old will pen a deal for two or three years this summer.
Capped 112 times, Farrell would leave Saracens and link up with former England coach Stuart Lancaster at the high-profile Paris outfit.
However, Racing were quick to dampen speculation.
"Racing 92 are regularly (subject to) numerous speculation concerning movements within its squad," the club said in a statement.
"We are delighted with the interest in our club. However, we deny any agreement concerning the English player Owen Farrell."
If Farrell were to move to the French capital, he would continue a Racing tradition of luring mercurial international fly-half talent.
In recent years, All Blacks legend Dan Carter has turned out for the club as have Ireland's Johnny Sexton and Finn Russell of Scotland.
After England's third-place finish at the World Cup last year, Farrell said he was taking a break from international rugby to prioritise his family's mental health.
A move to France would likely end his England career as he would not meet eligibility criteria.
By recruiting a new big name in world rugby, Racing would strike another big blow after the arrival of South Africa captain and two-time World Cup winner Siya Kolisi.