The Ibrox club are reported to be lining up one final bid to prise the midfielder from Tynecastle this summer after earlier approaches were knocked back.
Rangers boss Pedro Caixinha watched Hearts play Newcastle in a friendly on Friday.
Speaking ahead of a trip to face Elgin in the Betfred Cup on Tuesday, Cathro said: “A lot of people continue to say a lot of things, and that’s it really. There isn’t a situation.
“Jamie is happy, he is focused, he is training well, playing well. Like everyone really. The sun is out, we had a nice training session, not too much hard work, we have a nice wee bus journey, a game of cards, happy days.”
Cathro gave little away on reports that Hearts were stepping up attempts to persuade the 24-year-old to extend his contract beyond next summer.
He said: “I talk to Jamie almost every day, even on days off, because he is a player I’m fond of. He is a big talent, he is someone who at a point will move on to a bigger league, a bigger club and have opportunities to work towards the top levels of the game. Of that there is no doubt.
“And I’m very happy to be playing a part in how he progresses towards that.
“But, for now, people are just wasting their time.”