Wolves chief executive Jez Moxey says the club's board are all behind Mick McCarthy and that he has their "full support" as manager.
Mick McCarthy has the full backing of the Molineux board
Speculation over McCarthy's position has been rife with the club slipping out of immediate play-off contention.
But Moxey told BBC WM: "Mick's been with us 18 months and probably got the team to over achieve last season.
"This is the first difficult patch we have had. We're pleased with his work and he has our full support."
Wolves are currently seven points adrift of the play-off places in the Championship after taking just 11 from their last thirteen games.
And with Tuesday's match against bottom-of-the-table Scunthorpe postponed, Wolves missed the chance to close that gap.
"We were looking forward to that game because we need to get our league campaign back on track," said Moxey.
"We're disappointed but we have a young team and we have great confidence in the players and the manager to actually improve our situation.
We've got to put in some performances to get the fans off their seats but great things can still happen
Wolves chief executive Jez Moxey
"We've had our injury problems. For example, we've been without our two principle wingers in Matt Jarvis and Michael Kightly playing together but we're not making excuses and we are where we are.
Wolves have won just twice in the Championship since the beginning of December and crashed out of the FA Cup to former Wolves manager Dave Jones' Cardiff City on Saturday. And Moxey is aware that some fans are worried that the season is in danger of petering out.
"I can understand how people would feel that way," added Moxey. "But we're optimistic and we need the fans to get behind us.
"We've got to put in some performances to get them off their seats. But I think if we all stick together great things can still happen."