The duo have been spending time together recently as Kardashian is dating Kanye West, who performs with Beyoncé's husband Jay-Z as The Throne.
Recent reports claimed that the duo have a difficult relationship and "barely spoke" at Jay-Z's recent Made In America Festival.
However, a source has now told Us Weekly that the rumours are "absurd".
Adding that there is "absolutely no beef" between the duo, the insider said: "When Beyoncé saw Kim at the concert, she ran over and gave her the biggest hug."
The source also claimed that Beyoncé joined Kardashian in her dressing room after watching Jay-Z's performance.
Earlier this year, rumours alleged that Beyoncé and Kardashian were trying to bond over their shared religion.