Hoole is off contract at the end of the season and the Jets are in talks to re-sign him.
The winger is understood to be keen to make a move overseas at some stage, but Jones said he needed to become a more complete player in the A-League first.
"At the end of the day Andrew has still got a way to develop," Jones told The World Game.
"In my opinion, it's too early for him to go overseas. He needs to play this season and next season and he needs to be scoring eight to 12 goals and have the complete performance.
"At the moment we're getting good performances from him, but not consistently great performances.
"It's a work in progress and we're extremely happy with how he's going, but we'd like him to be here for at least another year so we can develop him to a level where I think he's good enough to go overseas and hopefully good enough to sneak into Ange's calculations for the Socceroos as well."
Jones said he had discussed all of this with Hoole and that the player was comfortable with the process.
"Yeah, 100 per cent, we've always had a plan to want to make him a better footballer, that's what we're trying to do with all of the players here," he said.
"It's not just about managing them, we need to coach and manage and educate.
"We don't have the luxury of spending $9 million and getting the supposed complete player, we're in the process of developing players and producing players and hopefully we can do a good job and take him to another level.
"He would like to play with us if he's going to stay in the A-League. He wants to get to a stage where he can eventually go overseas, but he's in no hurry to do that.
"The boy is just playing football day by day and trying to achieve goals and tick them off and hopefully tick off some bigger goals.
"It's a case of finishing off this season strongly. He's starting to go in the right direction and as I said I'd love for him to score eight to 12 goals and if he could then duplicate that next season I think he'd be well and truly on his way as a footballer.
"We want to keep all of our best players and Andrew is certainly one of our best players. We're talking to him about that."
Hoole, 23, had not scored a goal from open play in 50 games for Newcastle and 15 for Sydney FC before returning to the Jets this season. His only goal had come from a penalty, for Newcastle.
He has improved in that area this season and has four goals from 16 games, but he still needs to find more composure. He had a glorious chance to score in last week's 2-1 win over Melbourne City when he got one-on-one with the goalkeeper, but shot wide.
"If he's ruthless he can score more goals," Jones said. "It's about him. But he's learning and the statistics show he's getting better at it. I'd love to see him get up to an average of something like one goal in every two games and we'll keep working on that."