Speculation on Sunday suggested Pearson had been removed from his post at the King Power Stadium, with the club sitting bottom of the Premier League.
However, the Midlands club have stressed those rumours are of no substance.
A statement on Leicester's official website read: "Leicester City Football Club would like to clarify its position relative to its manager, Nigel Pearson.
"Contrary to media speculation on Sunday evening, Nigel remains the club's first team manager. Reports to the contrary are inaccurate and without foundation.
"Nigel, his staff and the first team squad are entirely focused on Tuesday night's trip to Arsenal and our continued efforts to secure our position in the Barclays Premier League."
Leicester have struggled to adapt to the life in the top flight since winning promotion as Championship winners last season, with their fans having little to shout about aside from a 5-3 victory over Manchester United in September and a run to the fifth round of the FA Cup.
Pearson has also found himself at the centre of controversy on more than one occasion.
The 51-year-old received a touchline ban and fine from the Football Association after clashing with a supporter in the aftermath of his side's 3-1 defeat to Liverpool in December, before becoming involved in a bizarre confrontation that saw him appear to grab Crystal Palace midfielder James McArthur by the throat during a 1-0 loss on Saturday.
Pearson, who took over at Leicester in 2011 having previously held the post from 2008 to 2010, had been linked with a bid to bring McArthur to the club during the close-season.
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