The Saudi giants are reportedly considering parting ways with Belgian coach Dimitri Davidovic due to poor results and looking for Jose as a replacement.
However, Al-Balwi distanced Ittihad from these rumors.
"We haven’t even thought about holding negotiations with the Portuguese boss," Al-Balwi told Dream TV on Saturday.
"Dimitri will continue in his post until the end of the season as we are concentrating on the Saudi League campaign following our elimination from the cup."
Jose, who guided Ahli to a host of trophies in his two separate spells with the Cairo giants, is yet to sign a new deal as his contract runs out at the season's end.
Meanwhile, Ahli striker Emad Meteb denied reports linking him with a move to Ismaili, saying he will only depart the African champions in case he receives a good European offer.