The 'A-Team' singer told The Sun that the reports came about when he went to speak to Bieber's manager Scooter Braun about working with a different artist.
[Left: Justin Bieber / Right: Ed Sheeran]
"I don't think a collaboration would work with Justin," said Sheeran. "I think collaborations should be done with people that can actually click. Two male singers makes it very difficult for it to work.
"I met Bieber's manager Scooter Braun in New York and he said, '[I've] got this artist I want you to write with'. Next time I was in LA, I was doing Jimmy Kimmel and he brought this girl [Tori Kelly] to Kimmel... I met her straight afterwards. I then went to the studio and did a song."
Sheeran is due to appear at this weekend's Grammy Awards, where he will duet with Elton John.
Bieber, meanwhile, is currently in rehearsals for his Saturday Night Live special this weekend, where he will be both host and guest musician on the February 9 edition of NBC's long-running late night show.
Watch Ed Sheeran's video for 'The A=Team' below: