He was brought to Hull by Brian Little in 2000, and has played just over 100 first team games for City. The last of those was on Boxing Day at York, keeping a clean sheet in a 2-0 win, but has since been unable to dislodge Boaz Myhill from the side.
With Alan Fettis still under contract after returning from a loan spell at Grimsby, City have three senior 'keepers which means the end for 'Mussie'.
Taylor said: "I think Alan will be coming back to us unless someone shows an interest in him. He has a year left on his contract and I think he'll see it out.
"I really hope Scunthorpe or Boston do sign him up. He's a cracking lad."
A move to Glanford Park would see him rejoin the club he made over 150 first team starts for between 1988-92 after signing on a free transfer from his hometown club Portsmouth, before subsequent moves to Port Vale and then the Tigers. If he opts for Steve Evans's Boston he would link up with his former team-mates Mark Greaves and Steve Melton.