"As far as we're concerned, everything is going to plan at this stage," Taylor told the Hull Daily Mail.
"We're talking to Alan and we're talking to his agent, but we haven't heard anything more as yet.
"There's a deal on the table from us but it's always been the case that his contract at Forest would have to be sorted. There's another year there and that has to be settled.
"I don't want to get too involved at the moment but I will say that I've been very happy with how our conversations have gone so far.
"I've got no reason to say that he won't be back here."