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Hull boss Peter Taylor said: "Luton and Boston both made inquiries about whether we would consider loaning him out but nothing seems to have come of it.
"It has been hard for him because he's not had much first-team action but he's a good player and a good professional.
"He has a lot of experience and it's hard for him to be on the bench but he's not had a problem about it for one second.
"After the inquiries were made I went to him and told him about the interest because it's only fair to tell the player. It's always upto the player if he wants to go, but I'm happy to have Jamie here."
Forrester scored three goals in 11 starts last season, but after missing the 2003-04 season start through injury has only managed five appearances - with four of them coming from the bench.
He began his career with Auxerre as a schoolboy, before returning to England with Leeds United where he helped them win the FA Youth Cup.
He moved to then First Division Grimsby in search of first team football, before following manager Brian Laws to Glanford Park in a £50K deal.
After helping the Iron to promotion through the Third Division play-offs in 1999 he joined Dutch side FC Utrecht on a Bosman transfer.
His spell in the Dutch top flight didn't work out, and he wanted to return to Scunthorpe but the United board were not prepared to pay a fee for a player they had lost on a free months earlier - instead he ended up with Northampton Town.
He formed a strong partnership with former Iron target Marco Gabbiadini at the Sixfields Stadium, but was allowed to leave the Cobblers on a free transfer last season as part of cost cutting measures - joining the big-spending Tigers at the Kingston Communications Stadium.