D.C. officials yesterday denied they had signed a $25 million contract with Dynalectron Corp. to help install a computerized traffic light system for the city.

"They were totally wrong to say they had a contract," said George W. Schoene, who is in charge of traffic for the District. "They were in error."

Dynalectron, which is based in McLean, announced Tuesday that it, along with several other companies, had been awarded a multiyear contract to create a centralized traffic control network to help improve the flow of traffic through the District.

Dynalectron President Daniel Bannister said last night, "I don't know what the mixup is," adding that he thought "the whole matter will be cleared up in a couple of days." He said the company official who knew about the contract was out of town and could not immediately be contacted.

The Washington contract, which would link more than 1,300 intersections, would have been the largest traffic control system contract in the United States. It also would have been the company's first installation. City officials said that it is still possible the District would sign an agreement with Dynalectron but that such an announcement should not be expected for the next several weeks.