Levitt and Deschanel have been friends for more than 10 years and have worked together in the romantic film "500 Days of Summer", reported Us magazine.
"It's awkward when people say that. Zooey and I just think it's funny. It is funny. We've been friends for 10 years," Levitt, 31, said.
Deschanel, who recently filed for divorce from husband Ben Gibbard in January 2012, is reportedly dating Jamie Linden.
Levitt says the 32-year-old actress is amazing and a very close friend.
"She loves movies, music and art, and she's incredibly knowledgeable about that stuff. She's turned me on to so many good movies and so much good music. It's fun just to have conversations, watch movies with her and stuff like that," he added.