"I've made no secret of what I want to do here but you have to take care of certain issues for yourself," Phelan told BBC radio on Friday, hinting his concerns were over the salary.
"The deal has to be right for myself and my family and be clear we're talking about the Premier League, we’re not in the Championship.
"I would have liked to have got it done weeks ago but it’s only in this last 24 hours we’ve ended up in this state of affairs," added Phelan.
"You do want parity with the Premier League and going forward hopefully that’s what will happen."
Phelan was Premier League manager of the month for August after taking over when Steve Bruce resigned before the season began, leaving promoted Hull in apparent chaos.
Left with only 13 fit senior players, the former Manchester United coach inspired them to pick up an opening victory over champions Leicester City and seven points from their first four games.
Players and supporters have urged the board to give him the manager's job.
Phelan said he was excited about Saturday's home game against Arsenal, last season's runners-up.
"It fires not just myself up but also the players," he explained. "They won’t disappoint anyone who comes to the game. It'll be a great test."
(Reporting by Steve Tongue; Editing by Tony Jimenez)
