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Hull, who are perched in second place in the Third Division, have revealed that they turned down a request from Reading Football Club to speak to Taylor.
The 53-year-old has been with the Kingston Communications Stadium based side for just under a year and was not interested in speaking to Reading Football Club, despite the fact that the promotion chasing Royals are two divisions above the Tigers.
In a surprise statement this afternoon, Hull chairman Adam Pearson confirmed Reading's interest and Taylor's reluctance to make the switch.
"Reading have approached Hull City regarding the possibility of talking to Peter in relation to the managerial vacancy at their club but following a brief discussion with myself yesterday evening, Peter was very clear in his decision that he did not want to pursue this opportunity.
"He is extremely focused on the job he has started so encouragingly at Hull City and is determined to see the job through to a successful conclusion.
"I am obviously delighted that Peter has shown such loyalty and commitment to the club at a particularly important period in Hull City's redevelopment."
Hull's statement makes Peter Taylor the first manager to be confirmed as a Reading target.
Whilst Hull's rebuffal seems conclusive, the Royals twice rejected approaches from West Ham for Alan Pardew before the Londoner walked out on Reading.
The London Evening Standard had earlier reported that Taylor had already met Reading Chairman John Madejski.
It is possible that Taylor could become the new Royals boss but given the bad publicity that West Ham and Pardew received it is unlikely that Reading will take their interest any further.
Despite all the speculation, interim boss Kevin Dillon remains in charge for tonight's game against Oxford United in the Carling Cup. It seems likely that he will also be in charge for Saturday's game against Sunderland at the Stadium Of Light.
Taylor began his managerial career in 1993 at Southend and he has since taken charge of the England under 21s, Gillingham, Leicester, Brighton & Hove Albion and for one game only, the England national team.