Northern Ireland Secretary Peter Hain has the confidence of the Prime Minister, a Downing Street spokesman said today.
The Downing Street statement follows the launch of an inquiry into whether he or his officials deliberately misled the High Court.
The case centres on a judicial review into whether the Government's appointment of a Victims' Commissioner in Northern Ireland was correctly handled and whether incorrect information was given to a woman who challenged the appointment.
The British attorney general, Lord Goldsmith, announced yesterday that he would carry out an investigation after receiving a request from a High Court judge in Belfast.
The Prime Minister's official spokesman today refused to be drawn on Lord Goldsmith's inquiry. "The secretary of state has said that he will co-operate fully with the investigation," the spokesman said. "The attorney general is looking at this matter. I think it is important that we let him."
Asked if Mr Hain still had the Prime Minister's confidence, the spokesman said: "Yes".
It was disclosed yesterday that Lord Goldsmith had received a memo from Mr Justice Girvan listing 67 questions he needed to ask to get to the bottom of the matter.
Mr Hain has denied any wrongdoing, saying that he rejected any suggestion that there was a deliberate attempt to mislead the court.
The controversy has centred around the appointment by Mr Hain in October last year of Bertha McDougall, the widow of a police officer murdered by republicans, as interim Victims' Commissioner.
It was an appointment supported by the Democratic Unionist Party at the time, and there have been accusations from other parties of sleazy deals to attempt to push the political process forward.
The appointment was challenged at a judicial review by the widow of a west Belfast man killed by a police plastic bullet. Brenda Downes questioned whether Mrs McDougall was the best person for the job and whether she could command cross-community support.
The Goldsmith inquiry centres around a letter sent to Mrs Downes by the Government in response to a question about the appointments process that was made under the Freedom of Information Act.
The judge said it was now accepted that the letter sent by the Northern Ireland office had wrongly created the impression Mrs McDougall had been appointed as the best candidate.