The 25-year-old is a restricted free agent this year and was elevated to the Demons' leadership group this week.
However, after playing under seven coaches in eight years at the Demons, he wants to wait and see how this season plays out before signing a new deal.
"At this stage we are comfortable that James wants to see the direction of the footy club," Melbourne football manager Josh Mahoney told Fairfax Media.
"We presented to James prior to Christmas and we are in talks with his management and are ready to talk to him, but James has indicated he wants to focus on training and playing at the moment and get a better idea of the direction of the club."
Mahoney said Frawley had indicated he wanted to delay talks, but had not expressed a desire to put them off until the season's end.
Frawley's manager said the lines of communication were open but the 2010 All Australian backman simply wanted to wait.
"James is keen to let the season take shape before we start focusing on contract discussions," Alex McDonald said.
"The club has been in constant contact and updating James on where the club is at and their direction."
Frawley was drafted with pick No.12 in the 2006 NAB AFL Draft.
He has been at Melbourne throughout a tumultuous time under four coaches – Neale Daniher, Dean Bailey, Mark Neeld and now Paul Roos – and three caretakers in Mark Riley, Todd Viney and Neil Craig.
Twitter: @AFL_JenPhelan