The former Ipswich Town and Sunderland hit-man has made a positive impact with The Glovers after struggling to find a first-team place with The Robins.
The Bristol-born veteran's Huish Park loan deal expires at the end of November, but Fry will seek to have talks with Ashton Gate counterpart Steve Lansdown regarding Stewart's future.
"Quite clearly, Marcus Stewart has made a big difference to us and I have got to speak to the chairman of Bristol City about Marcus's future," Fry told Western Daily Press.
"Marcus is a superb player and no one has contributed more to our recent success. He's the model pro.
"We've heard about his reputation from the past and he's been with big clubs and scored goals at the top level.
"He's 33 but he's been an excellent loan signing and I know that he is in (manager) Russell's (Slade) plans.
"It's really down to Steve Lansdown and myself to get together at some point and tell Marcus where he stands."
One Yeovil player to remain away from the Somerset club is midfielder David Poole after he extended his loan with League Two club Stockport County until November 13.
Bristol City youngster Elliot Benyon, meanwhile, has joined Conference club St Albans City on a month-long loan.
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