Blackburn manager Mark Hughes has offered Tugay a new one-year contract with the opportunity to move on to the coaching staff at Ewood Park.
Midfielder Tugay struggled to secure a place in Blackburn's first-team last season as Rovers finished seventh in the Premier League.
However, Blackburn chairman John Williams has revealed the 37-year-old has been offered a fresh pay-as-you-play deal.
"Essentially it is a playing role, but there could also be a chance to move into coaching," Williams said in the Daily Star on Sunday.
Back to best
Meanwhile, striker Benni McCarthy has stated that he could end his career at Blackburn.
The 30-year-old South African struggled for form last term as he failed to live up to the highs of his first campaign with Rovers.
But McCarthy, who was a summer target of Chelsea last year, insists that he will be back to his best in the next campaign.
McCarthy said: "I can see myself finishing my football here,"
"You will see a new player because I will be back to my old self."