The Chelsea centre-back has been linked with a move to Liverpool in recent weeks but the caretaker manager insists he has no desire to sell the England international
The 30-year-old has found himself displaced by John Terry and Kurt Zouma since Hiddink took charge at Stamford Bridge and has not made a Premier League appearance since the 2-2 draw with Watford on December 26.
The club are also pursuing a move for New York Red Bulls centre-back Matt Miazga - with the defender poised to move to Stamford Bridge - but Hiddink insists Cahill still has plenty to offer the Blues.
"He is of big value and I will prove that in the upcoming time," the caretaker manager said on Friday.
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"He was very open and clear that he loves to stay here. There was no single space left by him to say 'I'm not happy'.
"He is happy here but not playing creates frustration, which is normal. I like his attitude and that will always be rewarded.
"There is no hint from his side that he wants to leave the club.
"He is very happy and he is of value and as far as I'm concerned I will have him in the coming months and the club will have him in upcoming years.
"Of course players who aren't playing frequently, they must get frustrated. I spoke to him days ago about the situation, which I always like to do with key players.
"Recently he signed a new contract, which is a signal he loves the club and likes to be here. Sometimes players don't play frequently but everyone will get their minutes to play."