Trump: Epstein did not introduce me to Melania
Biden, the son of the former US president, claimed last month that Mr Trump had met his wife through Epstein, the paedophile financier who died in prison in 2019.
The first lady threatened to take legal action against him if he did not retract the 'disparaging and inflammatory' statement.
Mr Trump on Thursday pushed back on Biden's claim, saying he met his wife through 'another person' whom he did not name.
The US president has been under pressure over his former friendship with Epstein as his administration refuses to approve a blanket release of the documents it holds on the paedophile.
Mr Trump accused Biden of making up stories to demean the first lady and said he had encouraged her to sue him.
'I said go forward. You know, I've done pretty well on these lawsuits lately… and Jeffrey Epstein had nothing to do with Melania and introducing,' he told Fox News Radio host Brian Kilmeade on Thursday morning.
'But they do that to demean, they make up stories. I mean I can tell you exactly how it was and it was another person actually… but it wasn't Jeffrey Epstein.
'I told her go ahead and do it. I'd rather use my lawyers – very upset about it.'
Biden claimed in an interview in July that Mr Trump had been introduced to his wife, then a model, by Epstein, citing Michael Wolff, the journalist who has written four books about the president.
Mrs Trump threatened to sue him if he did not retract his claim.
Lawyers acting for the first lady wrote to the former president's son last week, accusing him of making 'false, defamatory, disparaging, and inflammatory statements' about her, Fox News reported.
Biden has so far refused to do so, saying on Thursday: 'F— that. That's not going to happen.'
'They spent an enormous time together. According to [Trump's] biographer, Jeffrey Epstein introduced Melania,' Biden told Channel 5 with Andrew Callaghan in an interview published on July 22.
'That's how... the first lady and the president met. Yeah, according to Michael Wolff.'
Biden, a businessman and artist, has recently embarked on a media tour, marking a contrast to his father Joe, who has maintained a low profile since leaving office in January as he battles an aggressive form of prostate cancer.
The former first son has defended his father and angrily lashed out at Democrats who forced his father to abandon his presidential bid, including George Clooney.
'F‑‑‑ him. F‑‑‑ him. F‑‑‑ him and everybody around him,' Biden said of the actor, a long-time Democratic supporter who called for his father to end his re-election campaign.
He also lashed out at Mr Trump, whom he labelled a 'f---ing dictator thug'.
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