"I hope Yeddyurappa will not leave BJP and will remain a prominent state leader. The party is making all efforts to retain him and the central leadership will soon take steps to ensure he remains in the party," he told reporters.
Mr Yeddyurappa, agitated on being neglected by the top brass after his ouster as Chief Minister, had stated last month he would float his own party in December.
He had resigned in July last year after the Lokayukta report on illegal mining indicted him.
MR Shettar said BJP is all geared up for assembly elections due next year and some 'misunderstandings' in the party would soon be solved.
He said the return of former Chief Minister SM Krishna to state politics would not make any difference to BJP's prospects of winning the next assembly election.
"Congress lost in 2004 assembly election under Krishna's leadership, which paved the way for BJP to form a coalition government with JDS. I don't think Krishna can turn the tables on BJP this time too. There is no place, as of now, for Krishna in state politics," he said.
Mr Shettar said he felt proud of giving a corruption-free administration after he took charge four months ago. "My government is transparent and launched several development works," he added.
On the garbage menace in Bangalore, which prompted the High Court to warn the civic body it would supercede it if corporators interfered in waste disposal, he said the situation would return to normal as government has initiated steps to clear garbage on a war footing.
Meanwhile Medical Education Minister SA Ramdas said the BJP central leadership would take an 'appropriate decision' to suitably accommodate Mr Yeddyurappa in the party.
"Yeddyurappa has toiled hard for four decades to build BJP in Karnataka and bring it to power and as such he will not defect from the party at any cost," he told reporters at Chikballapur near Bangalore.
Mr Yeddyurappa would lead the BJP campaign in the next assembly election, he added.