A private investigator claimed the missing girl – whose grandparents were from Co Donegal and who would now be 12 years old – had recently arrived in the South American country.
But officials sought to discount the claims after a search of the suspect area.
Miraz Ullah Ali Isa, a British private detective, told local media he had been told Madeleine had arrived in Paraguay.
“My team and I received the information that Madeleine arrived in Paraguay one or two months ago and is living in Aregua in the custody of a woman,” he said, referring to a city in the south west of the country.
One of the theories circulating following the toddler’s disappearance in 2007 was that she had been abducted and given to a childless couple.
But Luis Ignacio Arias, an Interpol inspector in Paraguay, told news agency EFE tonight that Mr Isa was not a reliable source of information.
“There’s nothing concrete about that person,” said Mr Arias, adding that he had not reported his claims to any police authorities.
Jalil Rachid, the country’s vice minister of interior security, also said Madeleine had not been found in Aregua.