It was reported that the Northern Ireland internationalist had been told he was free to find another club.
But Ally has insisted the former Hibs and Kilmarnock player has a future at Ibrox. He would clearly like to see him come good again.
The forward has struggled with injuries since he signed for the Glasgow giants in the summer of 2012.
But he was on the bench in the games against Dunfermline and Airdrie last week.
Dean started off well at Rangers. He scored goals and displayed decent form in his first-team appearances.
He has been unfortunate with injuries. I think he has to prove he has something to offer between now and the end of the 2013/14 campaign.
Ally would like to have a fully-fit Dean Shiels in his squad next season because the SPFL Championship will be far harder than League One.
But he may have to accept letting some players go who are not involved in the first team and work with a smaller squad.
He may have to rely on having quality players in his first team and supplementing his squad with youth players.
Graham Wallace, the chief executive, has got a job to do and he has to cut costs at a business that is losing money.
Ally will be unhappy if he has to move on players like Dean and the size of his squad is reduced.
It will make his job - getting the team back into the top flight - far harder.
There has to be fresh investment, from Dave King or somebody else, in Rangers in the near future if they are going to move forward on and off the park.