The Algerian, 23, who joins in a £1.3million deal, played every
minute of his country's three World Cup games this summer.
He also hit the headlines as one of four Algerian stars injured
when the Desert Foxes' coach was stoned by Egyptian fans last
November.
The 24-year-old has been transfer-listed with the two sides well
apart on the financial aspects of the deal.
A spokesman for the Magpies said: "We can confirm that Steven
Taylor is on the transfer list."
Taylor's current terms expire at the end of the season when he
would be able to leave the club on a free transfer.
As a result, Newcastle have reluctantly decided they may have to
cash in on him now.
However, a statement released on behalf of Taylor and his agent
Paul Stretford revealed that the player, who was stunned by the
club's move, is keen to resolve the situation.
The statement read: "Figures released to the media do not
accurately reflect the position of either Steven or his agent.
"Both remain happy to continue negotiations over a new and
extended Newcastle United contract.
"Steven was disappointed and surprised to hear through third
parties that the club had decided to transfer list him.
"He has always given 100 per cent to the club and will continue
to do so given the opportunity."
He said: "To be given a chance to compete against some fantastic
sides for a team like Fulham is something I've always dreamed of
doing."
Halliche has picked up 20 caps since his debut against Senegal
in May 2008 but has spent most of his two-year spell at Benfica out
on loan.
His arrival will help plug the gap left in defence by Philippe
Senderos, who has been ruled out for six months with an Achilles
injury.
Cottagers boss Mark Hughes has already signed £5m Belgian
striker Moussa Dembele.
