The midfielder, 29, was reported to have engaged in a heated argument with his skipper at half-time at Anfield on March 1.
Fernandinho insists it was simply a conversation and he admits he is surprised it has become such a significant story.
“People are creating and telling stories, even though it didn’t happen that way,??? he told the Manchester Evening News.
“It was nothing major. There were other people around us, and you have to raise your voice a little bit. There was no fight, just a conversation.
“Every player in every team speaks to each other in order to improve the quality on the pitch ??? that communication is necessary. You have to talk, and that is what happened.
“There was a conversation and not much more than that. I don’t know why people actually thought there was a fight. We spoke about how we could improve things in that match.???
The pair were dropped for the subsequent win at home to Leicester on March 4, with Kompany on the bench and Fernandinho in the stands – and the Brazilian insists he does not have an issue with his captain.
He said: “I don’t have anything bad to say about Vinny. He is a great player, a great team member, and I have always liked him.
“Myself and Vinny spoke about it that day, and everything was settled on that day. It was finished. It’s very weird that this story actually came up; for something so small to suddenly become so big.???
Manchester City travel to Burnley for Saturday Night Football, live on Sky Sports 1HD from 4.45pm