Online newspaper the Mirror.co.uk has indicated that Taylor is on a list of shortlist of managers to succeed Warnock should he leave Bramall Lane with current assistant-manager Stuart McCall also on the list.
It is also believed that Portsmouth chairman Milan Manderic has begun talks with Warnock - and expects an answer today. However the South Coast club could go for Alex McGleish who is under fire at Glasgow Rangers.
Taylor is currently without a management job whilst he now works as a football pundit on radio show TalkSport, it is expected that his role would be 'Director of Football' with McCall as manager.
It is also suggested that McCall would go with Neil Warnock - however the former Scottish international is a huge favourite at Bramall Lane with both players and fans and would be guaranteed a future in Sheffield, with or without Warnock.