"Let me be as clear as I can - there is NO, repeat NO proposal by the state to change the name of Shankracharaya Hill in Srinagar," Omar wrote on micro-blogging site Twitter.
Omar said he wanted to stay out of the discussion on the issue as it was based only on "imagination".
"I had wanted to stay out of this discussion since it was based on the figments of some very active imaginations but no such luck," he said.
"From conversations with ASI (Archaeological Survey of India), I have ascertained that there is no such proposal with them either. So I have no idea why the rumour!" he asked.
Omar said the Shankaracharya Hill has been known by parallel names and will be known by these names in future as well.
"There have always been parallel names for Shankracharaya hill and always will be. This isn't the only place with two or more names," Omar said.
The Chief Minister said there were some real issues, involving consequences of life and death, facing the state over the recent days.
"Recent days have shown that we have real issues to deal with, often with life and death consequences. These imaginary issues don't help," he said.
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