McDonald, who has been on the books of Wolves since 2013, struggled for playing time in the final weeks of the 2015-16 campaign.
“We want him to come back in pre-season, work very hard and work his way back into the team,” Jackett told The Express & Star regarding the future of the midfielder.
“He’s a contracted Wolves player, I don’t think there’s any surprises coming with him. He has to be as fit as he possibly can during the course of the summer and earn his place back. I’m confident he wants to stay too.”
McDonald scored three goals and created 32 chances in 33 Championship appearances this season.
The 27-year-old midfielder had a pass accuracy of 79% and a shot accuracy of 46%, and won 34 headers, 28 dribbles and 45 tackles.
The Express & Star reported last month that Glasgow giants Rangers are interested in signing McDonald in the summer transfer window.
The Gers have won the Scottish Championship title this season and will play in the Scottish Premiership during the 2016-17 campaign.
It seems that Rangers may not find it easy to land the former Dundee and Sheffield United man this summer, as Wolves appear to be keen on retaining his services for the 2016-17 campaign.