The Holland international featured in the newspaper ahead of our away clash with Debrecen - but claims the quotes were misrepresented from an interview in his homeland.
Babel told Liverpoolfc.tv: "I was very disappointed when it came out because I never gave an interview here in England - I never gave an interview to The Sun.
"I did give an interview in Holland a month ago when I was with the national team, and I think they took some bits out of it and added some of their own opinions.
"They wrote that I'd talked about other players - and I would never talk about players like that.
"The funniest thing was them publishing that I'm not friends with Dirk Kuyt. Come on! Dirk will tell you how our relationship is.
"It has to be made clear. Who published this? The Sun - I wouldn't talk to The Sun."
Babel has spoken with Rafa Benitez and some of his teammates about the quotes.
He added: "I am very happy that the boss made it clear straight away that he had confidence in me and believed that I didn't do the interview.
"I hope people understand. It is easy to read papers and believe it's true, and so I was disappointed with the situation and the fact it was published on the day of a very important game.
"I have spoken to a few of my teammates and they were clear that it was The Sun and so it was nothing."
Meanwhile, Babel has reiterated his determination to stay and fight for his place at Anfield during a crucial World Cup year.
He said: "I have given a lot of interviews about my feelings and how I am but the situation is the same for every player who likes to play games and thinks he is good enough to start.
"I feel confident that I'm good enough to play a lot of games for Liverpool. I keep saying this. Hopefully I'll get chances to show this.
"I was disappointed with the injury (against Man City) because I'd been given another start and had to leave the pitch after 20 minutes.
"I have to keep working hard and I'm not at the point yet where I've shown what I can do.
"For every player it's nice to go to the World Cup and it's very important to do that in your career.
"As far as I'm concerned the way to do that is to fight for my place at Anfield - definitely."
Toujours aussi glorieux "the Sun"...