The FA issued a statement on Monday warning fans that the use of the word "Yid" at football grounds could result in a criminal conviction or a banning order.
Opposing fans cruelly use the term as a means of abuse towards Tottenham, who have strong links with the Jewish community.
As a means of defiance Spurs fans have coined the term "Yid" and often describe themselves as the "Yid Army" or "Yiddos".
Despite this, the FA still says that the use of the word could be termed offensive.
Tottenham issued a statement on Wednesday promising to consult with fans and the FA over the matter and Villas-Boas backed the club's stance on Thursday.
"The club has issued a statement that is strong and shows intent to co-operate with the FA regarding the use of the word," the Spurs manager said.
Villas-Boas also backed Tottenham's assertion that the word is used as a "defensive mechanism" which "deflects" the anti-Semitic abuse they have had to endure for many years.
"It's understandable our fans don't use it in a negative way," he said.
"It's something they chant with pride and it's very difficult to differentiate the wrong and the right of what they do.
Source: PA
Source: PA