The 20-year-old was previously reported to be at the risk of losing her title after details of her letter of complaint to the New York head office of the Miss Universe Organisation was made public.
Finch reportedly claimed she had been pressured by pageant's national director Deborah Miller into signing an exclusive three-year management contract.
But according to the Daily Telegraph, the Sydney-based model slammed the reports claiming pageant runner-up Jade Russell would be taking over the crown, reports News.com.au.
Finch said: "I have not been replaced and Deb and I are pulling together in a positive direction."
She added: "For someone to lose their title you have to do something wrong and in my case I haven't."
Miller also confirmed that Finch remained the titleholder and would represent Australia at Miss Universe pageant in the Bahamas in August, the Courier-Mail reports.
She said: "Rachael has the full support of Miss Universe Australia, and we will work with her to promote Australia positively on the international platform."
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Miss Universe Australia denies crown stripping rumours
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