Rumour mills were abuzz that Arjun's character Jasjeet will be now played by the 34-year-old model-turned-actor Kunal, who has dismissed the reports.
"This is not true. I haven't replaced Arjun in 'Don 2'. It is very disappointing and upsetting, " said Kunal.
"His character doesn't exist in the film and mine is a fresh character altogether, " he added.
Arjun reportedly moved out of the movie on financial grounds. The sequel retains the original cast that includes Shah Rukh Khan, Priyanka Chopra and Boman Irani.
Kunal was in the capital as a showstopper for designer Manoviraj Khosla on the second day of the Van Heusen India Men's Week (VHIMW) here Saturday. The three day gala goes on till Sunday.
He has also been learning to fly a single engine Cessna 172 at Sagar in Madhya Pradesh since the last two years. He is now "finally" waiting to get his licence.
"I am going there next month. I am still 20 hours away, so I'll finish that and probably finally get my licence, " Kunal told.
Last seen in "Lamhaa", Kunal's other future projects include "Doga" and "Chamkila".