DMGT said in a statement today it had not made a bid for part of the US internet giant.
But the company said it "remains in discussions with parties who may potentially be interested in Yahoo", indicating it could be involved in a bid made by another organisation.
Verizon Communications has been tipped as the front-runner in the bidding war for Yahoo's core assets.
Verizon submitted an offer with advice from investment banks Guggenheim Partners, LionTree and Allen & Company, and was expected to have advanced through to the second stage of booking, Reuters reported. But Verizon, which acquired AOL last year, is facing competition from other companies, including Yellow Pages owner YP, and private equity firms.
It emerged earlier this month that DMGT was considering a bid to acquire part of the US web giant.
Confirming the talks, ahead of a deadline this week, DMGT said: "Given the success of DailyMail.com and Elite Daily we have been in discussions with a number of parties who are potential bidders.
"Discussions are at a very early stage and that there is no certainty that any transaction will take place. We have no further comment at this time. Further updates will be provided as appropriate."
But the company said in a statement today: "DMGT would like to clarify that it has not submitted a bid to purchase Yahoo! It remains in discussions with parties who may potentially be interested in Yahoo! DMGT has no further comment at this time."