Pearce has been linked with vacant manager posts at Stoke, West Ham and Oldham in the last year.
Kevin Keegan said: "He will be the one who decides whether he goes or not. I will not say to Stuart that it is time to go.
"He is part of the backroom staff and a very important part as well. If he comes tomorrow and says there is a chance to go then he knows he only has to ask.
"Eventually he wants to be a manager and he is ready to be a manager."
Of the former England captain's role, the City boss added: "Stuart has plenty of responsibility here. He works very closely with Derek Fazackerley on the training.
"He has a big input. It is not like it is just Arthur Cox and me. It is the four of us. We talk through things together."