Knights said the 270-game veteran would still hold off on deciding his playing future until the Bombers' September campaign was over.
He also reaffirmed that the decision would be entirely Lloyd's to make, with the captain not yet intimating which way he was likely to go.
"You would know as much as I do. He plays his cards pretty close to his chest, and I think he's weighing up a lot of things at the moment," Knights said on Tuesday, after the club announced it would not contest Lloyd's four-match rough conduct ban.
"I wouldn't like to say either way.
"I've said all along, and I spoke to Matthew again today, we'll sit down post season and have a good discussion for two or three hours.
"It will be about how Matthew is feeling about his football, whether he thinks he can be of value to the team each year in the role he would play, and how his body is going.
"We'll discuss that at the end of the year, because we don't want to take away from what we're trying to do at the moment."
Knights said he was confident the club had made the right decision in accepting Lloyd's suspension, as well as the one-game striking bans for Paddy Ryder and Sam Lonergan that stemmed from Saturday's spiteful clash with Hawthorn.
He said there was further deliberation with whether to contest Lloyd's case than the other two, with previous evidence considered before the decision was made at 10.45am on Tuesday morning.
"Over the last 24 hours, we gathered enough information as possible and got as much advice as possible, and we've got to take into account of what the players think," he said.
"When it was all said and done, the club made the decision with the players that we'd go down this track, and we think it's the right decision.
"We'll go into the game without them, which is not ideal because I would have preferred all three to be playing, but they got handed their penalties and we move on."
Knights said Lloyd had a "fair share of say" in the ultimate decision, and that the club would have been prepared to help him fight the charges throughout this week.
"We support Matthew's decision, and we would have been happy to support him either way in the end," he said.
"There's been a huge focus on head high, and the speculation post-game was rampant.
"Matthew felt himself that it was done and dusted in many ways, because head high contact seems a nasty part of our game at the moment and there is a big focus on it."
Earlier, Lloyd told the club's website he consulted family and friends when deciding on whether to fight against the charge, which left Hawthorn's Brad Sewell with fractured eye socket and cracked cheekbone.
"On balance, I did not believe that appealing the decision was the right way to go," he said.
"I am also aware that this is an unwanted distraction leading up to a big final for the club and I hope this will be the end of the matter."
