HULL City are said to be in talks with Luton Town over making Ryan Giles' loan switch to the MKM Stadium permanent - with Middlesbrough keeping an eye on developments.

As reported by the Northern Echo earlier this week, Boro are set to rekindle their interest in their former loanee this summer but there are various complicating factors.

First of all, there's the deal between Luton and Hull. Giles joined the Hatters from Wolves 12 months ago on the back of a hugely impressive loan spell at the Riverside. Boro pushed to make the deal permanent but Giles instead opted for Luton - a decision that backfired on the 24-year-old, who only made five Premier League starts before heading for Hull in January.

When the Tigers completed the capture of Giles in January - one of several high-profile signings in what was a bold approach to the winter window - the club said they had the "option" to make the deal permanent in the summer.

Reports have since claimed that it was in fact an obligation rather than an option. Either way, the expectation at this stage is that Hull will finalise the Giles deal. The fee agreed back in January was said to be £4m. If there is an obligation to make the deal permanent, it's not clear at this stage what the hold-up is, why the clubs are in talks and what matters are being discussed.

So why, if Hull do sign Giles, would they will be willing to let the full-back leave for a rival? Well, it's not clear that they would at the minute. But if there is an obligation to make the deal permanent, that was agreed back in January when Liam Rosenior was the boss.

Rosenior spoke previously of his desire to keep Giles, even though the former Wolves man didn't start any of the final six Championship games of the season. But he's now been replaced by Tim Walter in the MKM Stadium dugout and at this stage it's not clear if and how Giles will fit into the German's plans.

“In Hamburg when I was there, we scored the most goals in the season, so we played very offensive football," Walter said at his unveiling this week, explaining what Hull fans can expect next season.

"We had a flow building up from the back, so nobody stands still, and it’s always play and move. If you stay still, well you will be dead.

“There’s a lot of principles in my game, but it will be new and different.

"I’ve watched a lot of Championship matches and I know this league is going to be really tough but, for me, football is the same everywhere. The league is very competitive, which is true, but winning is the same.”

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The other Hull factor to take into account this summer is their battle to comply with the league's profit and sustainability rules.

Owner Acun Ilicali said this week: "There are FFP limits and there is a big pressure on all Championship clubs. They will only let me spend £14m from my pocket and I will spend that to the limit, but after that, we cannot spend any more. We have five loan options too.

"I will not promise where we finish, but I promise we will give everything and Tim will give everything too. You cannot predict football, but over 10th, every place is successful for us. Success for us is top 10, but our aim is top six, we will aim for that."

There is, then, the very real possibility that the Tigers will have to accept the need to trade this summer if they're to get what they want from the window.

Giles was quizzed on his future at the back end of the season and said he would "100 per cent" like to stay at Hull, adding: "It's a great club. Everyone's made me feel really, really at home.

"The fans have taken to me really well, which I really appreciate. All these things as a player help you settle in quickly and that was what it was about the day when I walked through the door. You don't take those things for granted I don't think, well, I certainly don't. I certainly remember. It's been really good, but that's thanks to the club."

While not doubting that Giles did feel happy and at home at Hull, that interview was done long before news of Boro's rekindled interest emerged. Giles, it's understood, would jump at the chance to return to Boro and link-up again with Carrick, for whom he enjoyed the best spell of his career so far.

If a deal was possible this summer, Boro would prefer an initial loan with a view to a permanent down the line. They wouldn't be willing to pay the £4m Hull will reportedly be forking out.

Although Luton, Giles' current parent club, suffered relegation from the Premier League and are now preparing for life back in the Championship, the full-back doesn't have a future at Kenilworth Road.

News of Boro's interest in Giles has prompted obvious questions about the future of Lukas Engel and Alex Bangura. The pair arrived last summer on the back of Boro's failed Giles chase. Although Engel improved significantly after a troubled start, he still wasn't overly convincing. Bangura is still seen as an exciting prospect but, on the back of an injury disrupted campaign, it's still not known whether he's ready for a leading role. Hayden Coulson, Boro's other left-back, will be allowed to leave on a permanent deal this summer.

Boro will prioritise the capture of a midfielder, a striker and a versatile forward player when the window opens next week - but they'll continue to pay close attention to Giles' situation.