Saeed is blamed for masterminding the Nov 2008 attacks in Mumbai that left at least 166 people dead and hundreds wounded.
Saeed, in an exclusive interview to Al Jazeera, said, "India always indulges in propaganda and has always fabricated false reports about me."
He claimed India had rejected his offer to have a dialogue on Kashmir.
He said, "India has never had a sincere interest in opening dialogue. When they do, it is because of national interest. If India wants to restore confidence in opening dialogue with Pakistan, then India must accept Kashmir as a core dispute."
"I never said no to dialogue - that is propaganda. I have always talked about having open dialogue, but it needs to be productive, it needs to obtain results," Saeed said.
Saeed also denied reports that he knew Ajmal Kasab, the lone terrorist captured during the terror strike in Mumbai in 2008.
"I never saw him Kasab. In fact, it was from media in India that I discovered he was a Pakistani national," he added.