Etherington has two years left on his contract, but Scholes says there is no resentment on the club's part that Etherington has asked for an improved deal.
He told The Sentinel: "We have met Matthew's representatives a few times now. Matthew had a fantastic season for us last year. In fact he has had a fantastic 18 months since he came to the club.
"He has fitted in and done exceptionally well for us.
"His representatives are of the view that we need to reflect that in a renewed contract for him.
"We would be delighted to extend his contract, but we have to do it on the right terms.
"We want to reward him appropriately, but also have to make sure we don't get carried away and that the player's wages are consistent with other players' wages at the club and they are affordable."