The 25-year old France international goalkeeper was signed from Lyon for around £12million this summer but has arrived at White Hart Lane as Spurs' number two behind 41-year old veteran Brad Friedel.
Lloris has already spoken out about his situation in North London with Villas-Boas insisting that he will need to work hard to displace Friedel who has been in stellar form of late.
"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 said ahead of Sunday's trip to Reading.
"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.
"Hugo just has to be patient and of course he will be patient. He knows that he competes for the first team. He told me: 'I'm here to compete and I'm here to prove that I'm the best'.
"When you hear this from a player you know that the commitment is there for him to make sure that he gets into that position, so there is no issue whatsoever."