The derelict Grade II listed building was ravaged by fire last April and residents want it rebuilt.
Those living nearby say demolition signs have been erected at the site which is causing “anxiety” for those who want it preserved.
Merton Council has told Jackie News the signs only relate to the scaffolding at the site and there are no plans to demolish it.
A Merton Council spokesperson said: “There is no intention to carry out any demolition works at the site of the Burn Bullock. We recognise the significance and legacy of the building, and our officers are carrying out their duties to reduce the risk of further damage.
“We have determined that the building requires scaffolding to stabilise it, and the landowners have chosen contractors to carry out this work. They are in the process of designing scaffolding to prop up the elevations of the building, and our Building Control and Development Management teams, together with Historic England, will ensure that these designs are appropriate.
“The confusion around the signs is understandable, but this is simply re-purposed signage from a contractor who also carries out demolitions, and they only relate to this scaffolding work.”