The 16-year old had looked to be on his way to Arsenal this week, but the Gunners are refusing to pay part of the compensation package which was originally agreed with the Imps.
It is beleived that the hold up in moving to London is all down to a possible sell-on clause should Hobbs move on in the future, and the teenagers agent Charles Collymore has stated that there is already other Premiership interest, notably from the Wanderers and Tottenham Hotspur.