The 29-year old striker spent all of last season as well as this term at Portman Road, following a spell there in 2010, and would love to join the club permanently rather than waste his time at Parkhead.
"I won't be going back to Celtic," Murphy told the club's official website. "My contract is up at the end of the season and then I will become a free agent and we will see what happens after that.
"Everyone knows how much I like it at Ipswich - I'm one of the long-serving players having been here three times on loan.
"The priority is to see Ipswich stay up this season and nothing will be looked at until that can be achieved but after that then I hope something can be sorted out because obviously I'd like to stay here. It's a great football club."