The former Sheffield United and Sunderland forward has netted six times in 22 games so far this season for Town, only matched by Jon Walters who has hit the same number in 30 games in all competitions.
However it is understood that Town boss Roy Keane, who has already brought in Daryl Murphy and David Healy in the January transfer window, is keen to add another new face in the emergency loan window to boost his strike force.
Owner Marcus Evans has previously informed Keane that to bring extra players in he may need to move others on, and it is likely that Stead will be the sacrifice made in order for Keane to achieve this.
Should Keane not however make a move for another forward, Town's forward line would be made up of recent signings David Healy and Daryl Murphy, Spanish striker Pablo Counago and hot prospect Conor Wickham whilst Jon Walters could also play up-front.