McDonald, who missed one league game until February, has failed to appear for Jackett's side in exactly a month and trained with the Under-18s this week.
As a result, the 27-year-old was linked with a move to Rangers on Thursday, as the Light Blues look to add to their squad following promotion.
But Jackett has told the Express & Star that McDonald remains in his long-term plans.
“He’s in my long-term plans,” Jackett said.
“It’s up to him to change my mind and bounce back, which is football life.
He added: “His attitude’s been fine. His training and his work has been fine.
“It’s just been my decision.”
Jackett also explained the decision to banish McDonald to the Under-18s, saying the former Dundee player had requested to train and the Under-21s were away.
It was reported by the Express & Star that Wolves are demanding at least £1 million for McDonald, a former Scotland Under-21 international.
Rangers are set to lose Arsenal loanee Gedion Zelalem next season, while Nicky Law is out of contract in the summer.
Accrington pair Josh Windass and Matt Crooks will add to Mark Warburton's midfield options from July 1, though at 23, Jason Holt stands to be the Light Blues' most senior central midfielder next term.
McDonald would certainly add experience to that department, having made 135 appearances in England's top two divisions.