The Tools | Project Options | Statuses tab as below:
This tab allows to define requirement's statuses.
•Status
Name of requirement's status.
•Description
Description of requirement's status.
•Color
Color of requirement's status. (It is used when the option "Use colors defined by project" is on. When it is used as a text color, it may automatically change the tone to visually apparent.)
•Up, Down Buttons
Buttons to move the requirement's status up or down in the list.
•New, Save, Delete Buttons
Buttons to create/save/delete the requirement's status.
Statuses can not be deleted if they are used in the Status and Initial Values tab or requirements.