The England international has been left out of City's Club World Cup squad and effectively transfer-listed for the summer market.
Everton are being linked with Grealish and Stubbs told the Liverpool Echo: “I think it tells you the type of players that Everton are trying to bring to the club, which is great.
"Are Everton going to be paying 300 grand a week on Jack’s wages? I certainly don’t think so.
“If a deal is going to happen, I think it will be one where Everton pay x and Manchester City pay y. Listen, I’d love to see Jack Grealish at Everton, I think he’s the quality that we’re looking for.
“If you look at him in a number 10 role, what he can bring compared to what we’ve already got, it’s a significant upgrade. I think Jack Grealish needs loving again, I think he needs to go to a club where the fans are going to adore him, and would certainly be the case at Everton.
“I believe that Jack needs to feel loved in terms of playing, week in, week out, and if he does that, I think we could see the best of him.”