Chairman Tony Durkin and the rest of the Chester FC board have said manager Neil Young retains their 'unequivocal support' and have dismissed speculation over his future.
Young has led the club to unprecedented success since taking charge in May 2010, delivering three consecutive league titles and promotions.
But with the Blues struggling badly in the Skrill Premier and facing a relegation battle, his position has been called into question for the first time in some quarters.
A dismal FA Trophy exit at home to Barrow AFC and confirmation former Chester City boss Jim Harvey would be helping the club on a consultancy basis made for a morbid atmosphere around the Swansway Chester Stadium on Saturday evening.
After watching his side throw away a one goal lead to lose 2-1 against the Bluebirds, Young admitted he was feeling 'disillusioned and upset' with the way things were going.
But he reiterated his belief that he was the man to get the Blues out of danger and said he was working hard than ever to keep them in the Skrill Premier.
"I don't think I need to prove what I can do to anybody," he said.
"People may question where we are at the moment and can I manage at this level. It's not about levels, you get positions where it is very difficult.
"Can I do this job? I'm very capable of doing this job and I'm hungry to do it more than ever."
Young described his side's performance against Barrow as 'shambolic' and apologised to the supporters for the display. He questioned the attitudes of some of his players but said he took full responsibility for the situation the club was in.
"I apologise to everyone who has watched that the game because that's just not good enough," he said.
"That was as bad as it gets but I can't keep apologising. The form of the team and certain individuals is just not good enough."
Young said he fully understood why people were unhappy but stressed he would continue to attempt to turn things around until he was told otherwise.
He said: "Do people want me to leave? The reaction at the end of the game wasn't great but I understand that because of the performance.
"That's in the hands of the club. I've had a fantastic time here and if people decide that I'm no longer the person to take the club forward then what will be, will be.
"All I will say is, whatever people may think, I am giving over 100 per cent for this football club, always have done and always will do until the day somebody tells me otherwise.
On Sunday evening, the club indicated it would be releasing a statement in response to the uncertainty over Young's position with some fans speculating his departure would be confirmed.
However, when the statement came it was clear and concise: Young had the full backing of the board and would be given the chance to lead the club to safety.
It was confirmed Harvey - whose son Steve was part of a consortium interested in buying Chester City in 2009 - had offered to prepare a report for the board on the potential expansion of the football infrastructure but that would now be reviewed with Young and the current youth section management.
"Hopefully, this statement clarifies the current situation ahead of the AGM minutes," said Durkin.
"Neil was advised in advance and made aware that any consultancy work was exploratory. Unfortunately, a number assumptions have been made resulting in very inaccurate speculation.
"It is important that we all get behind Neil and the team to give us best chance of success."
Durkin said the board had been keen to consult the experienced Harvey as part of the continuing efforts to improve the club. He also confirmed he would sitting down with Young, whose current full-time deal expires in May 2014, to discuss his contract situation.
Young welcomed the statement and has now focused his attention on preparing his players for the home game against Braintree Town on Saturday.
"It was made clear to me that there would be no involvement in first team football, unfortunately it is part of football that people speculate," he said.
"But we all, the board and the football management team, remain focused and aligned on making the club successful."
