Recent rumours on Coco Perez suggested that Stewart - who signed a deal with Balenciaga in January - could be dropped at the request of Liberty Ross, a good friend of Balenciaga's creative director Alexander Wang.
Ross is married to Rupert Sanders, the Snow White and the Huntsman director who was spotted kissing Stewart earlier this year.
However, a source told E! News that there has never "been any talk about Kristen no longer being the face".
"There is zero truth to the story and they are happy with Kristen," another insider added.
Balenciaga has not yet commented on the speculation.
Stevie Nicks recently came to Stewart's defence following her infidelity scandal, saying: "It's not anything the rest of us haven't done."
Photo gallery - Kristen Stewart and others at the 2012 Academy of Motion Pictures Arts and Sciences Governors Awards:
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