Hiddink has been appointed Chelsea manager till the end of the season after the sacking of Jose Mourinho.
Drogba who is a fan favourite at the Stamford Bridge was in the stands with own Roman Abramovich and Hiddink during Chelsea’s 3-1 win over Sunderland on Saturday.
Drogba, who now plays for MLS side Montreal Impact, is currently enjoying his off-season break was reported to be in the frame to become an assistant coach at Chelsea, something his club denied.
“The rumour about Didier Drogba is unfounded. No contact has been made with the club or him,” Montreal wrote on their Twitteraccount.
“It’s important to have these club icons working for you. The only problem is that he has a contract in Montreal,” Hiddink said.
The Ivory Coast international enjoyed much success at Chelsea, winning four Premier League titles, four FA cups, three League Cups and the Champions League in 2012.
Drogba has played under Hiddink before when the Dutchman took interim charge of Chelsea in 2009.