The duo sparked speculation after Buswell split from her boyfriend Anthony Quinlan last week.
It was reported that the couple, who had been together for 10 months, had fallen victim to the infamous ‘Strictly curse’.
But Sugg has since broken his silence, insisting he doesn’t have time for a relationship.
Asked if there was a spark between himself and Buswell he said: “No, I don’t think so. I haven’t got time.
“But after the show finishes we’ll stay friends.”
Buswell and Quinlan, who plays Pete Barton in Emmerdale, confirmed their split in a statement, with sources claiming it was over Buswell’s close relationship with Sugg.
But Quinlan shut down the claims, insisting it was “distance” that caused the split.
“We’re still really good friends – it’s just distance played a part,” he told the Daily Star. "There were all these rumours about the ‘Strictly’ curse but it wasn’t that.
“I’m actually rooting for Joe and Dianne. They’re doing absolutely amazing in Strictly and I still think the world of the girl. We were really close, it just wasn’t meant to be.”
The Strictly curse has plagued the current series with Seann Walsh and his married dance partner Katya Jones being pictured kissing passionately on the night of his then-girlfriend Rebecca Humphries' birthday.
Both parties apologised with Walsh being dumped publicly on Twitter while Jones insisted her marriage to fellow professional Neil Jones is “very happy”.
Strictly Come Dancing is on BBC One, Saturday at 6:50pm