The 35-year-old joined the Cottagers in 2007 from Tottenham and has written himself into club folklore, leading them to the 2010 Europa League final, but his contract runs out at the end of the season.
Jol said he is hopeful Murphy will stay for at least another year "if we can agree on the terms" of a new deal.
"He is part of our playing culture," the Dutchman said. "That is what you see most of the time. He is our link-up player and if he is not there you get a different style.
"But of course Danny is not 22 or 18 like [Kerim] Frei so sometimes you have to create your own options."
Murphy is one of several players in negotiations over a new contract, including Andrew Johnson, Brede Hangeland and Clint Dempsey.
The latter has been exceptional for the west Londoners this year and negotiations are ongoing, according to Jol.
"It is the same as it was before," he said. "We are talking to Clint, we are talking to several players. We will probably see at the end of this month but, on the other hand, it is not a crucial thing.
"Clint is still here next year so I think time is on our side. He has been very important because if your strikers are scoring 15 goals and you have a player like Clint, we would be even higher in the league.
"But you can't imagine a situation if Clint had not been here."
Source: PA
Source: PA