Lee, a former Cy Young Award winner, has drawn interest from multiple teams and recently had been rumored to be available in a trade. The All-Star left-hander is still owed $70 million on a contract that runs through 2015.
The Phillies also are discussing a contract extension with second baseman Chase Utley, according to multiple media reports. Utley is in the final season of a seven-year contract and also had been widely rumored as a possible trade candidate.
Philadelphia (50-56) has lost eight of 10 games since the All-Star break, leading to speculation that veterans such as Lee, Utley and infielder Michael Young were available via trade.
Although Lee had drawn interest from multiple teams, serious trade talks reportedly fizzled since the Phillies sought multiple high-level prospects in exchange for the four-time All-Star. Phillies general manager Ruben Amaro Jr. hinted Tuesday that Lee likely wouldn't be traded when he told MLB Network that there was "very little chance" of a deal for the southpaw.
Lee, 34, has been Philadelphia's most reliable starter this season, going 10-4 with a 3.05 ERA in 20 starts.
Utley, 34, also has been a solid contributor this year after missing large portions of the past two seasons thanks to injuries. The five-time All-Star is batting .277 with 13 home runs and 36 RBIs in 77 games.
According to CBSSports.com, Utley and the Phillies are discussing an extension that would pay him $13 million annually over two or three years.