Kilgallon has rejected United's offer of a new deal and the club risk losing the player on a free when his contract expires in the summer.
But McCabe told the Sheffield Star: "The only way Matthew will be going anywhere is if we receive an offer that's acceptable to this club.
"If we don't then he will be staying for the remainder of his deal. It's as simple as that. If it's not right for us then nothing will be happening."