Brown says Folan was being chased by a host of other Championship sides after turning down a move to Queens Park Rangers.
"He refused a move to QPR," said Brown. "But there are our or five Championship clubs interested in taking Caleb, but at the moment, as a manager, I am sitting and thinking it is not a bad situation to be in.
"He looks like he wants to play for Hull City which is never a bad deal.
"The chairman's remit and mine are to be a Premier League chairman and a Premier League manager at the end of the season. How we do that will depend heavily on what we do in January."