Toulon haven't made an approach, but O'Connell isn't ruling anything out just yet.
The Irish captain says he is "90 percent sure" about whether or not he'll retire after the World Cup, and that he'll spend the month of June with his family before deciding on his fate.
O'Connell told
RTE.ie that he is close to reaching a decision on his future, but will remain tight-lipped about the direction until he is absolutely certain of it.
"Some people know when they are going to retire, they come out and say they are 100% sure. I'm probably about 90% sure what I'm going to do," he said.
"But the other 10% is probably holding me back for saying for sure what I am going to do yet in the media. I just want to be 100% sure before I say anything," he added.
O'Connell also denied he had been in contact with French giants Toulon, but did leave the possibility fo finishing his career abroad open, saying that things could change in the future.
"There are two people in France I chat to every week. They are probably Ronan O'Gara in Racing Metro and Mike Prendergast in Grenoble. They are two friends of mine. Apart from that, there hasn't been anything.
"There has been some stuff in the papers, but I suppose because I am coming towards the end of my career and I'm probably finishing with Ireland soon, that is where the speculation is coming from.
“But for me nothing has changed from when I spoke to you guys at the end of the Six Nations. I'm still in the midst of the decision, I probably have to get cracking and make my mind up on what I'm going to do. Probably the summer is the time for that now."
Last week, O'Connell was heavily linked with a move to the European champions, but both Toulon and Munster dismissed the speculation.
Yesterday, Toulon's Drew Mitchell said he'd welcome the three-time Six Nations winner and two time Heineken Cup champion to the south of France, and that O'Connell would bring a wealth of experience to the club.
"Having someone again with such experience and respect... his knowledge and the presence he would have for our younger players he would be an invaluable addition to our squad.
"If it does eventually happen and he turns up in pre-season, I'm sure our squad would benefit from his presence in our group," he said.
