Wednesday were said to be in contract talks with the central midfielder last month, by the Sheffield Star, but no extension has been announced.
It has led to speculation over Bannan’s future with the Owls arising, but Carvalhal is adamant that the 26-year-old will stay with the Yorkshire club for the long term.
CC: I think Barry Bannan will be here with us and I am sure that will be solved soon. He likes it here with us and we like him #swfcLIVE— Sheffield Wednesday (@swfc) January 7, 2016
Bannan currently has six months remaining on his deal at Hillsborough, after signing from Crystal Palace in the summer.
The Scottish international has played a vital role for the Owls this season, and his commitment would be a major boost for the Championship promotion hopeful.
Bannan has racked up 20 appearances for Wednesday this term, and he has established his place in their line up.
Bannan’s good form has helped Wednesday climb into seventh spot in the Championship table, just two points outside the play off spaces.