The energy drink-owned team's driver manager Helmut Marko told the widely-circulated German newspaper Bild this week that Rosberg "is a strong driver".
There are brilliant people here like Ross Brawn and Norbert Haug
Mark Webber's Red Bull contract ends this year, and the highly rated German Rosberg - who outpaced Michael Schumacher at Mercedes throughout 2010 - will reportedly also be in a position to move on at the end of the current season.
But Rosberg told Auto Motor und Sport: "I feel comfortable here with Mercedes.
"The Silberfeil (Silver Arrow) is my dream car. There are brilliant people here like Ross Brawn and Norbert Haug, who know how to win a lot in Formula One and who have done it before," he added.