The alleged remark emerged as sacked FBI director James Comey released a collection of memos that are expected to reveal new eye-opening details about the US President.
According to the documents compiled by Mr Comey, the US President’s comment came during a brief meeting at the White House last year.
Mr Comey added, in the memos handed to Congress on Thursday, that the president told him the "hookers thing" was nonsense.
Mr Trump was referring to allegations in a dossier about a alleged encounter between the US leader and Russian prostitutes in a Moscow hotel, Mr Comey said.
It comes after the former FBI director revealed last year that he had written the memos following conversations with Mr Trump, who went on to sack him.
The documents contain a series of conversations between Mr Comey and the US president, including another about then-national security adviser Michael Flynn.
Mr Comey wrote that the president said he had "serious reservations" about Flynn, who soon left the administration and later pleaded guilty for lying to the FBI about his conversations with Russian officials.
Some lawmakers had been able to view the memos since last summer details of them emerged, but copies had not been provided to Congress until yesterday.