Nugent spent the majority of last season on loan at Burnley, who were also condemned to relegation from the Premier League, and has been linked with a move away.
But Cotterill, who was appointed as Avram Grant's successor last week, has refused to rule Nugent out of his plans for next season.
"I do not know what's going on with David. I've got a bit of catching up to do with plenty of things," Cotterill told The Portsmouth News. "I need to sit down with him and have a little look at what is happening and what he wants to do. There is no point in writing him off, he's a good footballer.
"David is a good player who can score goals at that level. I'm not going to forget about him, without a shadow of a doubt. I want to meet him and see what the future holds."
But Cotterill has played down speculation linking him with a move for released Burnley defender Steven Caldwell, adding: "That link was very interesting because I have not spoken to anybody about him. At 9am (Monday) morning I actually got a call from his agent wanting to know what was going on. I don't know where that has come from, I really don't."