Nugent have been linked with several Premiership clubs in recent weeks.
Simpson told the Lancashire Evening Post: “I don’t want Dave Nugent to go to the Premiership just yet, except with us.
“Preston is the best place for him to learn to play and improve.”
He added: “I know he is enjoying it here. If he joined a Premier League club he could end up not playing regularly.
“It would do him more good to remain in his current environment, playing every week and honing his skills.
“He is only 21 and has a long time in the game ahead of him.
“Potentially he has every chance of making it at the highest level.”