"What rumor?"
That was Del Toro's reaction when McSweeny approached him about the subject, and I love it. I can imagine Del Toro's face when he heard the 'news' and I wish I could have known what he was thinking. That's just journalism at its best right there (finding out the truth and confirming it). Once the rumor had been fully explained to him Del Toro knocked the rumor down completely.
"I am not involved in 'Godzilla' at all...I haven't read it or plan to read it. Nor have I been approached to direct it."
That's pretty much all there is too it. While directors as of late have been know for misdirecting their fans so they are constantly surprised (Bay, Abrams) Guillermo Del Toro hasn't exactly been known for that. He's normally pretty upfront with his fans. Even if he won't give everything away, he doesn't necessarily lie either. Besides, Del Toro is a nerd like the rest of us, and generally wouldn't keep quiet about something like this.

Sure, it would be amazing to see Del Toro direct a Godzilla movie. It would be gorgeous to say the least, but it's not something we're going to get. So far, Legendary Pictures haven't done much else with Godzilla since announcing their intent to reboot the franchise and hiring some writers on board with the script.
Oh and don't look at Latino Review too harshly for reporting it. We've all fallen prey to terrible sources before, and since they're generally a very reliable site I think we can forgive this one.
-Jordan