The 30-year-old has two years remaining on his contract and has said he wants to see his career out at Elland Road.
The YEP says that Leeds may consider offering Matteo an extended contract on reduced terms but he will want assurances that the club will rebuild in the Coca-Cola League.
Matteo is settled in Leeds and wants to play a part as the club looks to bounce back from relegation but any decision on his future may be taken out of his hands.
Blackwell is keen on Fulham striker Barry Hayles but the YEP can confirm that there are no plans for a swap deal with Matteo.