The reports also claimed that ministers had put the scheme on the backburner after a petition against the scheme on the Downing Street website with 1.8M signatures.
But a Department for Transport spokesman said it was never the government's intention to include powers for a national scheme in the Local Transport Bill.
"The position remains how the position has been for some time," he said.
"We are working with cities such as Manchester and Birmingham to come up with proposals and, at this time, we are not ruling a national scheme in or out."
He added that trials of the technology for a national scheme would go ahead next year as planned.