The Russian was criticised on all sides for his first-lap crash in Austria. It was similar crashes that put the young Russian's entire F1 career under a cloud last year, but Horner insists that Austria should not be a glitch as Red Bull decides what to do for next year.
"What happened [in Austria] can happen, so the decision won't be made on the basis of that," said Horner.
"I think Dany has had a pretty good season.
"We also have a lot of time inside Red Bull to decide, but I see no reason why we should replace him at this time. Let's wait and see how things develop."
Rumours are rife about Red Bull's four F1 drivers, with both Daniel Ricciardo and Max Verstappen linked with Ferrari, and Kvyat's Toro Rosso teammate Carlos Sainz having a rumoured standing offer to switch to Renault.