The goalkeeper, who only signed a five-year deal at Meadow Lane last August, has been the subject of speculation since Sven-Goran Eriksson resigned as director of football and new owner Ray Trew gained control of the club and announced plans to drastically cut its wage bill.
Cotterill insists the Magpies have yet to receive a firm offer for the 23-year-old but admits it is only a matter of time before Schmeichel departs.
"There has been interest in him, but no offers," said Cotterill. "I'm actually surprised there hasn't been more interest in him.
"I don't want to get rid of Kasper, but he will get snapped up. He should not be playing in League Two. The absolute minimum level he should be playing at is the Championship. He is a top-class keeper."
Cotterill added that his preference, should he still be manager next season, would be to sell Schmeichel to a club that would loan him back to Notts.
Source: Team Talk
Source: Team Talk