Brentford say manager Mark Warburton "will continue to lead the club" after speculation about his position.
A report in the Times on Tuesday said Warburton would be dismissed by owner Matthew Benham even if the Bees win promotion to the Premier League.
The west London club, who were promoted from League One last season, are currently fourth in the Championship.
Despite confirming Warburton's status, a Bees statement also said they "plan for various possible eventualities".
The 52-year-old was appointed Bees boss in December 2013 following a two-and-a-half-year spell as sporting director.
He has won 33 of his 59 games in charge of the team and is currently on a rolling one-year deal at Griffin Park.
The Brentford statement said that Warburton's "increasing profile within the game" meant that he "will deservedly have turned the heads of other clubs".
However, The Times reports that Benham and Brentford chairman Cliff Crown held talks with Rayo Vallecano manager Paco Jemez last week and offered him the chance to replace Warburton at the end of the season.
Analysis - Phil Parry, BBC London 94.9
Brentford obviously felt it was important to react to the reports, but the response may well have provoked more questions than provided answers. It would be naïve to think clubs do not keep tabs on potential future managers.
Brentford are aware that Mark Warburton's managerial star is shining brightly, so are they just are protecting themselves should he be offered an opportunity elsewhere. Rayo Vallecano are a relatively small team in a capital city dominated by bigger sides - is the work done there seen as a template to be used to take the Bees forward?
And what of Paco Jemez? His current contract, like Warburton's, is up for renewal in the summer. Is a representative angling for a move or a new deal with Rayo?
Warburton left a well paid job in the City to work in football and has made an amazingly smooth transition into management. His record is superb; promotion last season, currently fourth in the Championship and a win ratio of 56%. He has said he is disappointed with the reports, but is pleased that a statement has been issued.
And the statement continued: "We are a progressive club who do talk to other people within the game to learn about other ways of doing things, and to consider novel strategic approaches to the game.
"Those conversations continue internally, and are part of a healthy dialogue.
"Football is sometimes called a village, and in any village, gossip and rumours can spread like wildfire, whether or not such rumours are true.
"It would not be in the club's interests to disclose any of those discussions, but Brentford do want to confirm that Mark Warburton remains our manager."
Benham became Brentford owner in summer 2012 and is involved in financing the construction of a 20,000-capacity stadium at Lionel Road, which the club hope will be ready by 2017.
He has also been the majority shareholder of Danish Superliga side FC Midtjylland since last summer.