At the end of last week, Hoeness detailed some of the extravagant demands allegedly made by Alaba and his agent Pini Zahavi, whom he described as a "piranha".
One of the claims circling is that Alaba and his entourage are demanding that he become the club's highest paid player.
However, George Alaba has slammed the "lies" which he believes have been told by Hoeness.
"I didn’t expect FC Bayern to be spreading dirty lies in public about salary and commission claims.
“Claiming that we can’t come to an agreement over a new contract due to such payments is one of those filthy allegations. All because we didn’t accept the figures they have presented to us. We have our own ideas.”
Hoeness also claimed that Zahavi requested a huge commission bonus for his part played in the negotiations - a claim which has been denied by the agent himself.
“At no point did I talk in detail about a possible commission payment with the people in charge at Bayern,” he said.
“The only time this topic came up was when we met in Lisbon. Hasan Salihamidzic asked me how I would imagine that.
"I told him we should work on an agreement with the player first, but I wouldn’t ask for more than usual. I don’t want to get more than other agents who have received commission payments from Bayern.
"Again: we’ve not talked numbers yet.”
Alaba has been with Bayern since 2008 and has established himself as one of the best defenders in Europe, helping Bayern to te treble in 2019/20. His current contract runs out in the summer of 2021 when he will be able to join another club for free if no new deal can be agreed upon.