The young fullback was told that he could find a new club by Newcastle earlier in the summer.
However, he is now a part of the senior squad and may be called on to play in the Premier League.
Newcastle have a weakness at left back, which is where Lazaar comes into the picture.
The Newcastle boss said to Chronicle Live: “He will stay with the under-23s. We will see how he is going on. We cannot say no or cannot say yes – we have to see how he is doing and then we decide.
“The reason we put him in the squad is because we know it’s a weak position and we have no back-up so it’s just in case.”