The Owls have accepted a bid worth more than £250,000 for the 20-year-old.
Talbot scored for United against Doncaster last week, his first start for the club having come off the bench in the previous match.
He is now discussing personal terms over a move to Kenilworth Road.
It means that unless Iron manager Nigel Adkins can secure a new face before the weekend, he has little choice but to partner top scorer Billy Sharp with loanee Jermaine Beckford for the League One visit of Millwall