In a statement, LP spokesman Obiora Ifoh denied the reports and asked people to ignore the dramatic information.
Ifoh added that rumors that LP is engaged in merger negotiations are "twisted to embarrass the Labour Party."
"Please ignore the outrageous rumors circulating that the Labour Party is in the process of merging with another political party," the message said.
"It's just a news story that some media outlets have twisted and sensationalized to make the Labour Party look bad."
"A news organization requested an answer regarding Alhaji Atiku Abubakar's suggestion that opposition political parties unite to oppose the APC's proposed one-party regime in Nigeria.
"In response, I stated that it was merely a suggestion and that every Nigerian ought to be eager to bring democracy to their country, as the current system is a dictatorship.
"The supposed merger between LP and PDP was not mentioned at all in the response."
According to Ifoh, the Labour Party has just wrapped off its 2023 general election campaign, and a post-mortem has not yet taken place.
The LP spokesperson claims that the party's future has not yet been debated and that Nigerians would be fully informed when it does.
As a result, Ifoh has urged Nigerians to ignore this and numerous other lurid and sensationalized tales claiming to be from the Labour Party.
The Labour Party uses its official forums, according to the spokesman, to spread its message.