The 16-year-old is pondering his future as he gets set to sign his first professional contract.
Celtic are eager to keep the highly-rated youngster at Parkhead but face stiff competition from Munich and fellow Bundesliga side Hoffenheim.
There were rumours over the weekend that a deal was about to be finalised that would see Morrison swap Glasgow for Bavaria. However, Kennedy has denied such talk and Celtic remain confident about their chances of signing the centre-back.
He told The Herald: “I know there’s been a discussion but we’re trying to sign Liam on a professional contract.
"There’s a lot of interest from elsewhere but nothing’s happened, nothing has been agreed, we’re still in the mix and we want to keep our players here."