Simpson was strongly linked with a move to Aston Villa in the summer transfer window.
“He’s got a future here but he’s got a fight on his hands because Ryan Taylor has done terrific at left-back and now we’ve got Davide Santon who can play both positions. So he needs to play well now,” Pardew said.
“I don’t know where the stuff about Danny Simpson (leaving) came from.
“It’s totally untrue as far as I’m concerned, anyway.”