"These reports are not true," Hua Chunying China's Foreign Ministry spokeswoman told at a briefing.
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According to the newspaper, the rumored base in an isolated Wakhan Corridor in northeastern Afghanistan is said to be fully funded by Beijing.
On Tuesday, the South China Morning Post newspaper reported, citing sources that China had started building a training camp for Afghan servicemen to support Afghanistan's counterterrorism efforts.
In February, Afghan Defense Ministry deputy spokesman Mohammad Radmanesh stated that Chinese and Afghan officials were discussing the construction of a base in Wakhan Corridor, a remote mountainous strip that is isolated from the rest of Afghanistan.
Nevertheless, a Chinese embassy official in Kabul was scarce on providing details on the project, saying only that Beijing was engaged in "capacity-building" in Afghanistan.