It was suggested yesterday that talks between Mr Farage and those close to Boris Johnson had been sparked, with Mr Farage wanting the Conservatives to stand aside in seats where either the Brexit Party or Ukip had come second to Labour.
A source close to Mr Farage told the Sun he believed he could win “40 or 50” seats in the North, the Midlands, and south Wales.
But the offer has been strenuously dismissed by Downing Street.
Number 10 said the Prime Minister would not do a deal with the Brexit Party leader and a senior Conservative source described Mr Farage and Brexit-campaigning ally Aaron Banks as not being "fit and proper", and said they should never be "allowed anywhere near" government.
A Number 10 spokesman said: "The PM will not be doing a deal with Nigel Farage."
The senior Conservative source added: "Neither Nigel Farage or Aaron Banks are fit and proper persons, and they should never be allowed anywhere near government."
Mr Farage campaigned with Mr Banks' Leave EU group while the PM and his chief adviser Dominic Cummings were key to the official Vote Leave campaign.
The Brexit Party has offered to not field candidates to oppose hardline Brexit Tories who voted against Theresa May's Withdrawal Agreement all three times and who support no-deal.
Mr Farage is also clear that any rehashed version of Mrs May's deal cannot be presented to MPs.
Mr Farage claims the effort could help ward off the threat from a "Remain alliance" of opposition parties who oppose Brexit and could depose the Tories.
Downing Street's rebuttal of the pact came on the day the Brexit Party took out a wraparound advert across the front page of The Daily Express, as well as on a full page inside The Sun.
The Tory source's comment incensed Mr Farage, who tweeted it appears to be "from deep inside the bunker" and that he does not want a Government job, nor is Mr Banks in the Brexit Party.