He is contracted till the end of the season. If he does not or is not involved in the squad for at least 30 games for me; I would not even contemplate resigning him and release him. United hold all the cards with him as it is unlikely he will get any offers elsewhere of comparable wage. For whats its worth I do not see sadly any future beyond this season for the likes of him, Coutts and Scougall. All have varying degress of ability but none have shown they can stay fit and even when theya re they are not stand out players. Coutts had maybe 2 decent gaames last season. Wallace maybe 4 or 5 but that is unacceptable.
The one fortunate thing this coming summer is we have over 50% of the squad out of contract so likes of Collins, Flynn, Campbell Ryce, Wallace's, Collins, Higdon, Alcock, McEveley, Harris, the 2 keepers al could be moved on. If we did get promoted none of these would be good enough for the next level (James if he got fit one exception). If we don't go up they (and others) have failed again. So many are playing for their next contract and most elsewhere I feel as harsh as that sounds.
It is worrying that you can count on one hand the players who would even be in the squad at the level above but I don't think that matters. You get up and build again - may kill momentum and would be better to have more players like Brayford, Sharp, Basham, maybe Sammon, Adams who could play at a higher level but that is how it goes. How many players do Wednesday have left from promotion sides, ditto for Charlton, etc. They gradually have improved quality and now are mid table Champ clubs. To do a Southampton as Adkins did a few years ago would be very hard. when teams like Burnley are spending 9 million on a striker and Derby can sign 2 journeyman players for 10 million (Bradley Johnson and Jabob Butterfield)/.