Much has been made in some quarters of Keegan's urgency to put Taylor and Newcastle skipper Michael Owen on new contracts.
But, according to our source, Taylor has been is own worst enemy by allegedly asking for the same wage as the top earners at the club.
Although he has potential, the 22-year old is nowhere near being classed as one of the top defenders in the Premiership, and Mike Ashley knows that.
The club were initially angered by Taylor's demands he be put among the top earners at the club, but a compromise has almost been reached.
Allegedly he will earn a basic £25,000 a week, nearly one-third of what he was demanding!