Pressuring is mounting on the 52-year-old after the Scots lost 18-15 to Italy in a rain-soaked Rome, all but ending their hopes of contending for the championship.
Townsend's position was already under intense scrutiny after a poor autumn campaign and his contentious decision to take on a part-time consultancy role with Red Bull.
Reports have also been circulating in recent days that Townsend had agreed to join Newcastle upon expiry of his Scotland contract following the World Cup next year.
However, he said at his post-match press conference in Stadio Olimpico that his focus was on preparing the team for next Saturday’s Calcutta Cup showdown with England at Murrayfield.
Asked if he still had the appetite to soldier on, Townsend said: "Absolutely, we’ve got a game in seven days’ time.
"We’ve got a game to review, a selection to be put together and how we improve today is all we’re thinking about as a coaching group.
"It’s very tough when you lose but when you’ve got a game around the corner, your focus has to be on that.
"How do we make sure we put on a training session (and have) a team that goes out there and gives our supporters a victory? That’s all we’re motivated by."
Asked to clarify if he still expected to be in charge for the clash with England, Townsend said: “Well, I want to be, that’s my job so, yeah, that’s what I’m focused on."
Townsend flatly denied that speculation that he was set to take charge of Newcastle next year had any bearing on his side’s performance in Rome.
The fired-up Azzurri raced into a 12-point lead within 14 minutes through tries from Louis Lynagh and Tommaso Menoncello.
The Scots kept themselves in contention with scores by Jack Dempsey and replacement George Horne but they were generally unable to get their attack firing, while their set-piece continually malfunctioned as Italy held firm for a deserved victory on a sodden surface.
Townsend said he "100 per cent" acknowledged why there would be a backlash to a result that sees Italy leapfrog Scotland in the world rankings.
"We saw our supporters on the way to the game today. They mean a huge amount to us and we’re really disappointed for them that we didn’t find a way to win,” said Townsend.
"We know our fans are right to be disappointed that we didn’t get the win."
Captain Sione Tuipulotu added: "It’s a setback, definitely. If you lose a game in this competition, it’s hard to come back and win it.
"Teams have done it before but to talk about winning the competition is not something I want to get up here and do at the moment.
"I’m really frustrated that we’ve come here and lost this game. I thought we were really well prepared, but ultimately we just didn’t execute out there in the conditions."
