Many assumed Lloris would immediately be installed as Tottenham's first choice following his £12 million deadline day move from Lyon, but Villas-Boas said Friedel was still his number one after he put in an outstanding display in the last fixture against Norwich.
Following the draw against the Canaries, Villas-Boas said there was no way he could drop Friedel for Sunday's clash against Reading - a comment that did not go down well with Lloris and his national coach Didier Deschamps.
Deschamps told a press conference last week that Lloris had "not appreciated the comments of his coach" and the player himself said Villas-Boas' comments were "not nice to hear".
The Spurs boss held a clear-the-air meeting with the 25-year-old on Friday morning at the club's new training ground and insists the goalkeeper fully understands why he is sticking with Friedel for this Sunday's game.
"We have had a conversation with Hugo. We are extremely happy that he is part of this squad. We have no doubts about his talent and his future in the club, but against Reading we have made the decision to continue with Brad," Villas-Boas told a press conference. "At the moment we feel that Brad is looking consistent and deserves [to play] bearing in mind his last performance against Norwich, and against West Brom, which was extremely positive."