McCluggage is the biggest fish in this year's free agency pool and rival clubs have pitched interest.
But the dynamic midfielder says he's in talks with the Lions about his next deal - his current contract expires at the end of the season.
"We both know where I sit," McCluggage told reporters on Tuesday.
"I love it here. I really enjoy playing footy with this group and living in Queensland.
"I think we both want to get something done but it's taking it's time and that's OK.
"It's just simmering away in the background and I'm focussed on playing as well as I can and making sure we continue to build our form."
The 26-year-old Victorian-born on-baller is in his prime with a long-term deal most probable.
"I'm proud I've got to this stage where I'm hoping to sign for a longer period of time and set myself up," he said.
"But there's things that have to be worked through.
"Every other contract I've signed, I've been pretty flexible in when that's happened.
"It's not concerning me at all and I don't think it's concerning anyone else or affecting the way we go about things.
"You sign until the end of the year for a reason, so that you have that time to work through things."
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