The "Phantom" star said he and Shahid, who previously dated Kareena Kapoor, would have never agreed to work together if they had any issues.
"Why should there be any enmity between me and Shahid? There is so much going on, people trying to sell anything... As far as I am concerned, we really don't have any issues.
"He has always been very decent. And why wouldn't he be? And so am I. There is nothing bad between us no matter how much people want," Saif told PTI.
Both the actors will be sharing the screen space together in Vishal Bhardwaj's 1940-set drama "Rangoon", which also stars Kangana Ranaut.
"If we have any issue, we (Shahid and I) would have not signed a film together," he said.
Saif, who is yet to begin shooting for the film, said he has attended the fitting sessions so far.
"I am very impressed with the way Dolly aunty (Dolly Ahluwalia) has designed my costume. It's a period drama, so the costumes are also very different," he said. This is the second time Saif is teaming up with Vishal after "Omkara", where he received a lot of acclaim for his role as Langda Tyagi.