ABC News reported on its Web site on Monday that embassy officials had "strongly suggested" that the twins, Jenna and Barbara Bush, cut short their visit to Buenos Aires due to security concerns.
Argentine officials confirmed last week that one of Bush's daughters had her purse stolen in San Telmo, a neighborhood popular with tourists.
The incident led to teasing by Argentine media about the twins' seemingly ineffective Secret Service bodyguards.
"We have seen a report from news sources stating that embassy officials strongly suggested that President Bush's daughters curtail their visit in Argentina," the US Embassy said in a written statement.
"This is false... The embassy welcomes the visit and has provided close support and cooperation," the statement read.