The South Indian star posted on her Twitter account yesterday that her relationship with Abraham is strictly professional.
Asin wrote: "It's ridiculous to put two and two together and assume that if two people are single and cordial at work, they are having a 'scene'."
The pair are currently shooting Sajid Khan's ensemble comedy Housefull 2.
Asin went on: "John is one of my many co-actors on Sajid's Housefull sequel. We're a bunch of girls with loads of male co-actors. That's no reason to say that I'm having an affair with one of them."
The Ready star, who was recently linked to Neil Nitin Mukesh, added that she has spent less time with Abraham than other members of the cast.
"I'm friendly with all the stars on the sets," she said. "In fact, I've spent more time with Akshay [Kumar], Riteish [Deshmukh] and the Kapoor brothers [Rishi and Randhir]."
Abraham was recently involved in a high-profile split from Bipasha Basu, his partner of nine years.