Davies believes Forest have first option on Hobbs.
"So I can tell you it is now down to the two clubs to sort out what needs sorting out.
"I mean Forest and Hull sorting it out. Not Reading, not Wigan, not Birmingham, not Charlton, or anyone else that is involved in this transfer deal.
"The player doesn't want to leave. He is very happy at the club and wants to stay.
"He is very clear in his mind what his position is. It is now down to the two clubs, pure and simple."