Sunday Mirror Sport can reveal that initial talks have taken place between Taylor’s representatives, the Triple S agency, and Newcastle over a new contract and a three- to four-year deal is now on the table.

But Taylor will not commit himself until he knows what Newcastle’s squad strengthening plans are for the Premier League campaign.

Taylor’s future on Tyneside has been shrouded in doubt since he suffered a double fracture of the jaw after a training ground incident involving Magpies striker Andy Carroll late last season.

The differences between the pair have been resolved, but a host of top clubs including Arsenal, Aston Villa and ­Chelsea have been eyeing ­Taylor and Hodgson also showed an interest in him ­during his spell at Fulham.

And, despite Newcastle’s insistence that they want to keep Taylor, the odds on him heading for pastures new have significantly increased as top clubs try to sign players who have come through the English academy system as UEFA’s home-grown quota system looms in August.

Leading managers such as Hodgson, Arsene Wenger, Martin O’Neill and Carlo Ancelotti are all keen to boost their English presence and that has made Taylor a hot property.

Championship winners Newcastle’s public admission that they won’t be lashing out on transfer fees is bound to affect Taylor’s thinking as he weighs up his future.

To keep Taylor on Tyneside long-term, Hughton needs to offer an attractive new, long-term contract this summer and Newcastle’s financial plight makes that almost mission impossible.