Murdoch has dismissed as "100% wrong", a to replace the closed News of the World.
Last night he took to Twitter to deny the report, marking the first time that the chief executive and chairman of News Corporation, the parent company of News International, publisher of The Sun, has denied a story relating to his company, on the social network.
Murdoch’s tweet reads, "FT Financial Times or Fawlty Towers? Sun on Sunday story today 100 per cent wrong."
He was reacting to a report that claimed the weekend arrest and suspension of four journalists from The Sun would hamper any possible launch of a Sunday tabloid, called the Sun on Sunday.
The four journalists were questioned under suspicion of making illegal payments to police officers.
The FT report also played down suggestions in other reports that a launch date for the title had been set in stone for April 29.
However, other sources spoken to by Media Week agreed with the report in the FT.
Murdoch took to Twitter at the start of the year and now has more than 165,000 followers.
The FT was unavailable for comment.
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