Dunne met chairman Cowling for talks yesterday, after the Irishman revealed he was considering stepping down as U’s boss.
Dunne said he was mulling over his future in the aftermath of Colchester’s defeat to fellow strugglers, Scunthorpe United.
The U’s 2-1 defeat resulted in them suffering a ninth successive league loss, a new club record.
But it was business as usual at the club’s Florence Park training ground, as the players prepared for their trip to play Hartlepool United.
And Cowling is putting his weight fully behind Dunne, as he aims to lift the U’s away from the League One danger zone.
Cowling said: “Joe Dunne is our manager and I’d love nothing more in the world than for him to turn things around.
“I’m fully confident that he can get us up the table and he’s working extremely hard to do that, as he always has." See Tuesday's Daily Gazette for more on this story and all of the latest Colchester United news.