West Ham co-owner David Sullivan has confirmed the club are "100% behind" Avram Grant and that he will be staying on as manager, as the Hammers are a club that "does the right thing".
It emerged on Monday night that the club's attempts to lure former Aston Villa and Celtic manager Martin O'Neill to Upton Park had fallen through, leading the Hammers to publicly back Grant on Tuesday morning.
Grant's success in retaining his job comes as some surprise as the Israeli was widely expected to be sacked by the club, with some reports on Saturday even suggesting he would lose his job irrespective of the result of West Ham's game against Arsenal, which finished in a 3-0 win for the Gunners.
But ESPNsoccernet reported no decision had been taken over Grant's future and now the Israeli has been given a mandate to try to drag the club away from the relegation zone.
"The entire board is 100% behind Avram," Sullivan told ESPNsoccernet. "He is a really decent person who deserves our support.
"West Ham United is a club that does the right thing and the right thing at this time is to support the manager. We will do all we can to bring in players over the next 12 days and once we have achieved that we hope it will keep us up. I urge all supporters to rally behind the club at this difficult time."
West Ham confirmed Grant would remain in his position after rejecting allegations in Tuesday's press relating to vice-chairman Karren Brady.
"West Ham United categorically deny the allegations made in today's Daily Mirror with regard to Karren Brady, the club's vice-chairman," a club statement read.
"Karren has worked tirelessly to improve all aspects of the club's operation and is extremely disappointed by the nature of these unfounded allegations. West Ham fully intend to identify the source of these unhelpful and untrue comments and remove them from the club. West Ham have placed the matter immediately in the hands of their lawyers.
"The club are committed to retaining Avram Grant as manager and have identified potential transfer targets to give us the best possible chance of retaining Premier League status."
Despite West Ham's show of support for Grant on Tuesday morning, ESPNsoccernet can confirm the Hammers thought they had agreed a deal to bring O'Neill to the club.
It is understood that the man who quit Aston Villa at the start of the season had given every indication he would take the job, going as far as to discuss salary, the make-up of his backroom staff and possible transfer targets, including Tottenham striker Robbie Keane.
West Ham are currently bottom of the Premier League after taking 20 points from 23 games after having appointed Grant as Gianfranco Zola's replacement in the summer.