Usuthu have appointed Brandon Truter at the helm on an interim basis until the end of the current season.
Zungu when questioned on the current managerial appointment process distanced the club from a specific candidate although refused to rule out Baxter's viability.
"I don't know who spreads these things," Zungu tells KickOff.
"Our focus at AmaZulu right now is to finish the season in a top-four position. That should be our number one focus.
"And to that extent, Brandon enjoys our unqualified support.
"So that's what he is doing and if he does well he stands himself in good stead to be confirmed as permanent head coach for next season.
"That's all I can tell you.
"All these stories, not so long ago we were appointing Steve Khompela, I don't know how many coaches and players have been associated with us.
"And we don't talk about players we would be potentially signing at this stage, and neither do we talk about players which we are offloading."
Pressed further to rule out appointing Baxter, the chairman refused to rule out the possibility.
"We are focused on finishing the season in the top four, and to that extent, we have Brandon Truter in charge, and we've got players that are playing, that's my primary focus.
"Rumours about talking to Baxter), I think just talk to the people who are spreading those rumours about where they get it from.
"So I'm not answering the question whether we're talking to anybody or not talking to anybody, what I know is Brandon Truter is leading the charge.
"That should satisfy the AmaZulu faithful but I think we know what we doing with their team."