The Toffees have been linked with a bid for the talented shot-stopper, who will be involved in the European Under-21 Championship final on Monday as England take on Germany.
Lewis's selection, following his call-up to the England senior squad last season, has once again heightened his profile and reports are suggesting Toffees boss David Moyes is ready to offer Posh £2million.
But Fry, who is director of football at London Road, told the Peterborough Evening Telegraph: "I've had no conversation with Everton or any other club about Joe, which is a surprise because he is forever being linked with Premier League teams.
"He's certainly good enough to play at that level, but there is no question of us wanting to sell him. He's a big part of what we are trying to achieve here.
"Joe has a big reputation in the game and playing for England can only improve that."