Rochdale chief executive Colin Garlick told the club website: "Rochdale AFC have had no approach from Palace.
"We have said as much to anyone who has contacted us. "This is just pure speculation, paper talk and a complete non-story."
He added: "This has been going on since last week and to be honest we are getting tired of people creating stories with no substance or truth."
Hill has been manager at Spotland since January 2007, guiding the club to their first promotion since 1969 last season.
Source: BBC Sport