"We've made Danny an offer which I think is a good offer, if I'm honest," Pardew told the Sunday Sun.
"Like everything it's very difficult to understand value when you're a young player. You see other players at other football clubs and you hear rumours, etc etc.
"I think Danny should commit to the football club because he's done terrifically well here and the one thing I do know about young players in the Premier League, you can get lost quite quickly.
"He doesn't want to do that, he's found himself a nice berth in the club. He's keeping out Davide Santon, who we've paid very good money for; he's a new father, he's doing particularly well. Sometimes the grass isn't always greener and I would advise him to get his contract done ASAP.
"Danny needs to remember he's playing and getting valuable experience in the best defence in the Premier League."