Clubs in France and Bath have all been linked to the No.8 but he insists he will remain in Newport for at least another season.
"I've still got another year at the Dragons so I'm not sure where that speculation has come from," said Faletau.
"I'm still there next season. I've got another year left.
"I'm not sure what my options are. I'm not sure whether I will leave Wales.
"There's a lot of time between now and the end of my contract.
"The Welsh boys in France say it is great out there. Everyone is different I guess.
"But I know I owe the Dragons a huge amount. They gave me the chance that brought me to Wales."
Faletau's immediate focus is on Wales and their RBS 6 Nations clash with Italy on Saturday.
The Tongan-born powerhouse has been one of Wales' most consistent performers in the opening rounds of the Championship.
He is the tournament's top ball carrier and Wales' second highest in the tackle count but he reckons there is more to come.
"There are areas to work on - everywhere and they are just stats," added Faletau.
"It could be just metre carries or just picking the ball up, - that's a carry I guess.
"It's going okay for me, myself and the team."
Faletau will once again line-up next to former Lion Ryan Jones and Justin Tipuric in the Welsh back-row
"They are great," added Faletau.
"Tipuric's been playing well and then you've got Ryan who is just a great leader who gets everyone together and they stick together.
"They are all different and have different qualities.
"There's the right balance their still. Ryan with all his experience can only do the team good."
Wales will learn today if Sergio Parisse will be available to captain Italy. The Stade Francais star was sent off over the weekend for allegedly insulting a match referee in the Top 14.
But Faletau hopes to go up against the inspirational skipper and expects a fierce battle against the Azzurri.
"I'm not sure of the case or what he has done or not," said Faletau.
"We are preparing for him playing.
"He's a great player, physically strong. He carries well and leads well too so he's great for their team.
"He is regarded as one of the best No8s in the world so it would be great to run up against him."
"We are expecting a physical battle again and it'll be tough.
"We need a win to keep ourselves in the championship and we'll see how it pans out."