Newcastle United and Liverpool have been linked with a move for McCarthy, but Adkins believes the 23-year-old can still fulfil his England ambitions even if he is playing in the second tier with Reading.
"Maybe people will say he's in the Championship, not in the England set-up, therefore he's got to get a move to the Premier League," said Adkins.
"I don't think that's relative at all. I think it's better that he's playing regularly in the Championship.
"And at this moment in time, he's in the team here at Reading.
"Alex was on the provisional list that came through in the week. So we were aware he was in their (England's) thoughts.
"It's up to the England manager to select who he wants.
"Alex will be fine. I don't think he gets fazed by much."
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