The 51-year-old actor defended himself, saying that it would be "abnormal" not to have affair with such a beautiful woman, reported Aceshowbiz.
"I tell you what, you should ask her. She'll have a better memory. I'm 51 years old, do you know how much I was punched in the face on 'The Expendables'? No, no. No. And let's just say it happened, so what? Who wants to know? Yes, it happened," he said.
Van Damme played Colonel William F Guile and Minogue was his on-screen assistant Cammy in "Street Fighter" which was released in December 1994.
The actor, who tied the knot with actress Darcy LaPier in the same year when the movie came out, may have been married during the time of the affair.
"I was in Thailand, we had an affair. Sweet kiss, beautiful lovemaking. It would be abnormal not to have had an affair, she's so beautiful and she was there in front of me every day with a beautiful smile, simpatico, so charming, she wasn't acting like a big star. I knew Thailand very well, so I showed her my Thailand. She's a great lady," he added.