Wagner is tempted to give the talented forward a new contract following his new lease of life at the club.
The striker has been plagued by injuries, featuring in just 19 Championship games last season.
Several attempts at corrective surgery only led to more setbacks.
The former non-league player may be open to a loan move, which would allow him to return to match fitness.
Wagner could opt to send Lolley out on loan, rather than sell permanentlyReutersSheffield boss Chris Wilder is also eyeing the strikerReuters
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IT'S NO-2 FOR TOWN
Huddersfield Town boss David Wagner is out of contact at certain times - on the orders of wife Judith
Huddersfield boss Wagner has already smashed the club's record transfer fee twice this window.
First for Belgian striker Laurent Depoitre, then £11.5m man Steve Mounie from Montpellier.
The Terrier's record signing Steve MounieGetty Images - GettyFormer Borussia Dortmund II coach Wagner will aim to keep Huddersfield up next seasonPA:Press Association
Wagner will be keen to hold onto Lolley as he aims for a strong, and youthful squad.
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