He told the Sheffield Star: “Keeping Phil looks like it is going to be a problem.
“He’s told me that, if possible, he would rather stay in the Premiership, providing it’s the best thing for both him and the club.
“My job now looks like it’s going to be trying to ensure we get the best deal possible.
“That’s what I’ll be trying my best to do.”
Jagielka joined Sheffield United in August 1999.