Dublin Tourism, which owns the Fry Model Railway, says it is unaware of an anonymous donor reported to be offering €1.5m to re-house the museum in Malahide.
According to a newspaper report, the donor offered the money to have the railway museum set up in Casino House in Malahide, Co Dublin.
A spokeswoman for Dublin Tourism said the organisation is not aware of this offer, but is currently negotiating the sale of the collection with another buyer.
The model train set is currently in storage after Fingal County Council announced in February that it was withdrawing its facilities for use in Malahide Castle.
But Dublin Tourism says is had been overwhelmed with expressions of interest in the museum and that it is at an advanced stage of negotiation with a public body for the sale and preservation of the collection.
Under a covenant with the family of the late Cyril Fry, there are a number of conditions attached to the use of the museum, including one provision that it must be sited in Dublin.
