Speculation circulated online last week that the former Sons of Anarchy star would represent the Netherlands in the international singing competition next year, with Eurovision's official website even reporting the story.
However, Hasselhoff told The Hollywood Reporter that he is unaware of any such agreement and has no intention of taking the stage next year in Azerbaijan.
"I think Eurovision is a fantastic platform for singers and songwriters to establish careers and make a name for themselves," Hasselhoff explained.
"There are some amazing talents that come from this, and I wish them well, but I would never enter this competition as it would be unfair."
Watch Azerbaijan's winning entry 'Running Scared' by Ell & Nikki at the 2011 Eurovision Song Contest final below: