Sounds to me like he has a crush on both of you. That is why he will tell her other friends that he likes her but he will not admit it to her, he doesn't want you to stop flirting with him!
Either that, or her friends are lying to her to make her build up the courage to ask him out. (will end poorly) Either way it sounds like he likes you.
Either that, or her friends are lying to her to make her build up the courage to ask him out. (will end poorly) Either way it sounds like he likes you.