"This is plain nonsense and in fact is the latest in the series of misinformation rumours and canards being planted in media by vested interests against Modi," he said.
"Let me reiterate that we are going to fight this injustice being meted out to him at the appropriate forum and the best possible might that is permissible under the law," he said.
According to media reports, Modi, who is facing allegations of financial irregularities and investigations from multiple government agencies, is trying to get political asylum in Iceland to escape probe from the Enforcement Directorate.
Modi, in a post on social networking and microblogging site Twitter, wrote: "I am not going to Iceland. There is no truth to the story."
In another post he said: "There is no truth in 'ALL THE OTHER STORIES' as well."
The ED, which is investigating Modi in connection with alleged violation of Foreign Exchange Management Act (Fema), has written to the Mumbai [ Images ] passport office to revoke the former Indian Premier League chairman's passport.
It has already issued a 'Blue Notice' against Modi through the Interpol and is also looking at the specific charges made against him by the Board of Control for Cricket in India, which registered a criminal complaint against him in Chennai last week.
Abdi said Modi is fully cooperating with the legal process.
"So far as the propaganda that Modi is not cooperating with the legal process, I once again put it on report that he has been, is and will always cooperate with the process of law and the agencies concerned is whatsoever manner it is required," he said.