Ershad’s Deputy Press Secretary Khandaker Delwar Jalali issued a statement on Tuesday to defuse the rumours.
The leader of the opposition in parliament, who has been suffering from low haemoglobin went to Singapore on Sunday for treatment of liver complications.
Party presidium member Khaled Akhtar, Ershad's younger brother Hussain Morshed and Rukhsana Khan Morshed, the wife of Morshed, accompanied Ershad.
Following a facebook status on Ershad's death, which triggered rumours on Tuesday morning, bdnews24.com contacted Jatiya Party leader Ziauddin Ahmed Bablu by telephone.
"I have talked with him over the telephone a few minutes ago. His condition is better than before.
Facebook's news is not true,” Bablu told bdnews24.com.
Later, the party issued a statement ruling out the rumours about Ershad’s death.
“Do not listen to the rumours.”