Reports claim Chelsea are set to offer €27 million for Cuadrado, although Gazzetta dello Sport claimed Fiorentina club president Andrea Della Valle would not sell for less than the value of his buy-out clause, €35 million.
But Montella, speaking after his side's 3-1 win over Atalanta in the last 16 of the Italian Cup, said: "As far as I know there is no possibility for him to leave Fiorentina.
"He isn't really concerned by all this talk. Sometimes these situations are taken all out of proportion."
Cuadrado, a reported summer transfer target for Manchester United and Barcelona, has eclipsed his shaky start to the season with a string of solid performances to help the Serie A side up to sixth place.
Fiorentina are 16 points behind leaders and champions Juventus but are firmly in contention for the third and last Champions League qualifying spot at three points behind Napoli.
Cuadrado, who moved to Fiorentina from Udinese in the summer of 2012, has scored five goals this season including four in Serie A.