The attacking midfielder from Liverpool was given his full debut against Blackburn last season but has had few minutes in the first team besides that. However, the City boss believes he has had his chance to prove himself and it would be best for him to seek regular football elsewhere.
Keegan told City's official website: "There is a chance that Chris Shuker will go out on loan again. We have had discussions with him and he knows that at the end of the season he will be going."
He added: "Some of our young ones we feel have had a chance here. They have trained with us but really need to look to get into stable football. We need to look at those decisions with those players.
"Those contracts run out at the end of the season and players are not silly, they know if they are not playing in the first team that they will not be offered anything else. There are one or two players like that."
Shuker has just returned to the club's reserves set-up after a loan spell with Rochdale.
Midfielder Glenn Whelan may also be on his way at the end of this campaign. It is thought the Irishman will move to Bury, where he is currently impressing on loan.