Reports emerged this week suggesting the winger’s contract had been terminated just two months after returning to the Brandywell.
The speculation has come ahead of Derry’s league match away to UCD on Friday, August 2, at the UCD Bowl (kick off 8 pm).
However, Devine insists the former Coleraine man remains a part of his plans once he returns to fitness.
“People on social media seem to know everything that’s going on at this club,” said Devine.
“We worked hard to bring him to the club – we’ve given him time off to sort out a few issues he’s had, but he’ll be in training on Friday working on his fitness programme.”
McCauley returned to Derry on an 18-month deal in June after a short spell with Inverness Caledonian Thistle in Scotland.
“I’ll be delighted to see him working again,” added Devine. “The future’s bright and if he gets himself up to speed he’ll be part of our plans.”
While Devine will be without McCauley’s services for Friday night’s trip to UCD, he is pleased with recent performances as Derry aim to keep up the pressure on third-placed Bohemians.
“The last phase of games always throws up shock results,” he said.
“We’ve played everyone three times – UCD know our strengths and weaknesses and vice versa. We have to be at our very best to win down here.
“I think they’ll come out a bit more and look to pick us off, but we’re in a very good place and playing well. Now we have to make sure that continues.”