DCU student Murphy had been linked with a move to capital outfit Parnells.
The Dublin club has other county stars including Laois players Colm Parkinson and MJ Tierney on their books.
“I was slightly annoyed, there’s no point in lying,” he said, at Puma promotion.
“I have a great dedication and commitment to my club back home in Donegal, Glenswilly. It was kind of annoying, I don’t know where the rumours came from, there was no fact in it at all.
“As long as I know and my club know that there was no truth to them, we are happy enough.”