Networking firm i3 says it is fully committed to the Fibrecity Dundee project following reports it is on the verge of being scrapped.
The company has pledged to provide a fibre-optic network capable of delivering 100Mb broadband in the Scottish city, however the BBC reports that subcontractors were recently laid off.
A spokesperson for i3 told the news provider that this was the result of a temporary delay and the firm "remained committed" to the Tayside initiative.
"Work on the project has been delayed slightly while the group's UK operation is restructured to bring it in line with the company's overseas subsidiaries. We expect this to take up to four weeks," they stated.
"While we regret the confusion that this has caused in the marketplace, this restructuring will increase the efficiency of the organisation and place it in an even stronger position to use its innovative technologies and methodologies to deploy Britain's largest fibre-to-the-home network."
The i3 Group has already worked on a similar project in Bournemouth, Dorset, enabling households in the town to take advantage of high-speed broadband deals.