The comedian was said to have been "getting very hot and heavy" with the rapper at the Blue Nile jazz bar in New Orleans over the weekend.
However, Handler posted on Twitter that the pair were only meeting about a "potential project".
She wrote: "Everyone, calm down. I met with mr. Cent about a potential project. There's nothing to report yet, ill let you know if there is. (sic)"
Last month, Handler revealed that she had split from her boyfriend Dave Salmoni.