Magilton has overseen a mixed season and has failed to live up the expectations of the club's supporters given the large investment from owner Marcus Evans in the playing staff.
However Royle, who took charge during leaner times at the East Anglia club, has revealed his admiration for Magilton and insists he is the right man for the job.
"It's a hard job. Jim has the opposite extreme to what I faced - when a club has money to spend, fans instantly expect big things," Royle told the Ipswich Evening Star.
"Ipswich have spent substantially so the expectation levels rise.
"But I have a lot of time for Jim as a man and as a footballer. I admire him immensely. I wish him well and I wish the club well."