Sheehan joined Swansea in the summer of 2023, around the same time that Key signed from Exeter City.
Initially appointed as assistant head coach to Michael Duff, Sheehan had seven games as caretaker boss last season before reverting to his original role when Williams took over in January 2024.
Having stepped up for a second time two months ago – and then agreed a deal until the end of this season last month – Sheehan is waiting to discover whether he will be offered a long-term contract.
Key says Sheehan has the “respect” of Swansea’s players, adding: “I think everyone loves him as a guy and as a coach.
“He has been really brave to do what he’s done – it could have been very tough for him after Luke. We weren’t doing very well and there was potential for him to make it simple and just try to survive.
“But the teams he has put out and the way he has wanted us to play, I think we have fully gone for it. I think with the recent performances, he deserves a bit of credit.”
The Plymouth victory was a fourth since Sheehan took the reins, with only two defeats coming during what has been an encouraging run.
But question marks remain over Sheehan’s long-term future with Swansea known to have considered numerous options in the search for Williams’ permanent successor.
“It’s easy for me to say, but I think it’s a good potential [option] for the club to have [Sheehan] in there because he has a great record and I think he really buys into what Swansea want and what they are about,” Key added.
“The amount of detail he goes into has really helped us and I think if people saw what he does day by day, they’d be very happy to have him.
“I can’t comment too much, but I think he is a very good candidate.”