The Welsh boss would like to see Joe settled with a new deal sooner rather than later so he can be at his best for club and country.
"I don't think Joe has been at his best just recently for us or for Cardiff - and he knows what I think.
"The recent games for us he has been captain and I'm not sure if that has helped, while he had the captaincy taken off him at Cardiff and maybe that didn't help either.
"Of course, Joe has had this business hanging over his stay as to whether he is going to stay as he has a year left on his contract.
"I understand that Cardiff are close to coming to an agreement with him. The sooner that gets sorted it will be in the player's, Cardiff's and our best interest.
Ledley is expected to play left midfield for Wales tonight against Russia in Cardiff.