The clubs have agreed an initial fee of £150,000 for the highly-rated 21-year-old, but Newcastle are demanding a clause giving them 50 per cent of any future transfer fee for the player, as Sir Bobby views him as a player of immense potential.
"We're talking to Newcastle and I'm hoping something will be sorted out. My understanding is the chairman has discussed a 50 per cent sell-on clause and we need to look into that in more detail," Taylor told the Hull Daily Mail.
"We could spend two years working with Stuart and turn him into a £1million player but we'd have to waive 50 per cent of any fee.
"That's a lot of money. I can understand Newcastle's position. At the same time, we've got to try and balance things. Stuart has done very well for us and I'd love to bring him here."Sign-up for your daily Toon News e-mail