Barnett, the former Birmingham defender, claimed in a newspaper article that he was leaving Dunfermline was because of racist taunts from some of the playing staff.
D'Mello, who is of Indian descent, said: "I have had seven happy years at this club. It is a family and community club. Everyone is welcome here, no matter their colour, creed or background. We totally refute this allegation of racism.
"We've had no complaint from Dave about the way he was treated here and I will not launch a Spanish inquisition on the strength of an article. He told me he had to go for family reasons."Reuse content