According to league sources, Sheppard's agent, Lamont Smith, has had extensive conversations with the Jacksonville Jaguars about a possible offer for his client.

The Jags, who are trying to make their defense as Peyton Manning-proof as possible, were interested in Sheppard before the draft.

But their first-round trade-up with Baltimore to get defensive end Derrick Harvey cost them two third-round picks and a fourth-round selection, leaving them with just two picks in the first four rounds.

Because of that, they weren't willing to part with their second-round pick, which they spent on another defensive end, Auburn's Quentin Groves, in a deal for Sheppard.

But Smith is trying to broker a deal in which the Jags would give the Eagles a package of 2009 draft picks for Sheppard.

Smith did not return a phone call from the Daily News yesterday.

Asked Sunday night whether he expects Sheppard to play for the Eagles in '08, coach Andy Reid said: "As I sit here right now, Lito is an Eagle. That's how it is, just like every other guy on this football team.

"It gives us one great opportunity for a nice secondary. The way to use him is just like we used [former Eagles cornerbacks] Bobby Taylor, Al Harris and Troy Vincent. We just rotated all of them and they were all starters in our eyes." *