The Icelandic businessman bidding to take control of West Ham says he has great faith in the capabilities of manager Alan Pardew.
Magnusson is based in Reykjavik
Eggert Magnusson told BBC Sport: "I've full trust in the manager who is there.
"Wherever I have been - be it running the Icelandic federation or a club - I've always trusted the manager."
But the 59-year-old refused comment on West Ham's decision to sign Argentines Carlos Tevez and Javier Mascherano, saying: "I've no opinion on it."
West Ham have a lot of good players and they are capable of bouncing back and I'm sure they will
Magnusson added: "I don't how they were brought to the club or what was behind the deal."
Since the Argentine pair signed on transfer deadline day from Brazilian club Corinthians they have struggled and West Ham have failed to win a game.
Asked whether he would have signed the Argentine duo if he had been in charge of West Ham, Magnusson said: "I can't answer hypothetical questions."
But Magnusson was confident West Ham's poor form would soon end.
"I can only say that West Ham were playing well at the end of the last season.
"They have a lot of good players and they are capable of bouncing back and I'm sure they will.
"It is alway important to have stability in football."
The 59-year-old Magnusson, who is head of the Football Association of Iceland and a member of Uefa's executive committee, is reported to value West Ham at £75m.
Iranian Kia Joorabchian, who was key to West Ham securing the Argentine duo, has also been linked with a takeover of the Upton Park outfit, but he is thought to have struggled to raise the money needed to finance a deal.
Pardew has recently called for a resolution to the takeover situation.
"If we can resolve this as quickly as possible, that would be the best scenario for everybody," said the Hammers boss.