A number of reports suggested Pioli had offered his resignation following yet another underwhelming performance from Inter, with the club allegedly convincing the 51-year-old to stay on.
Inter have now acknowledged Saturday's defeat was unacceptable, but they remain confident Pioli is the right man for the job.
"The manner of the defeat at Fiorentina was unacceptable for our supporters and we are determined to put this right. Everyone at the club, from the players to the staff, is now focused on working as hard as possible to achieve the maximum result and finish the season strongly," a club statement read.
"In order to achieve this, the club confirms its full backing and that of the ownership in Stefano Pioli and his entire technical staff. Pioli joined Inter at a difficult time and the work he has carried out over the six months since he joined in November last year has been exceptional and deserves our respect. The club will not be distracted by rumours circulated by those outside of the club.
"Our target remains to finish as high as possible in Serie A and qualify for European football, by giving the maximum in every match and for the players to represent the club's colours with honour and pride as befits the history and tradition of this great club."
Inter have dropped to seventh place in the table following their recent slump, having collected only two points from their last five fixtures.