But the 21-year-old still harbours ambitions to play for the Old Firm or a Premier League side in the long term.
Reynolds said: "I am happy to stay at this football club and keep developing as a player.
"It's flattering that a club wants to buy you and I take it as a compliment that Motherwell saw the bid as an insult.
"Obviously they want a lot more money and it's nice to know that someone the calibre of Mark McGhee holds you in that much esteem and sees enough potential to demand more money."
"I think every player has aspirations to move on to bigger things - I don't think that is insulting to the fans to say that," Reynolds told Motherwell's website.
"Like every other player, those things appeal to me but there is an appeal of moving down south to the Premiership - an opportunity to test myself in what I regard as the best club league in world football.
"I think it's important the fans understand that if a young player doesn't have the confidence in himself to go and play at the top level then he'll be no use to the team he is currently playing in, not least actually getting a move to that stage."