Taylor, who managed both clubs, died earlier this week at the age of 72.
Taylor died at the age of 72 earlier this week, and the entire football community has been commemorating the popular figure since.
Now, Villa have confirmed on their official website that both clubs will rally together at Molineux before the match to honour their former boss.
After a minute's applause around the ground, both clubs will place floral tributes to Taylor in a ceremony which will involve both team captains, and coaches and former players Mark Delaney, Tony Daley and Rob Edwards, who all played under Taylor at Villa.
As well as his time in charge of Watford and the English national team, Taylor is best remembered for his first spell at Villa.
The manager took relegated Villa back to the top flight at the first attempt, and by his third season in charge had rebuilt the club so successfully that they finished as runners-up in the old First Division in 1990.
Following England's failure to qualify for the 1994 World Cup, Taylor resigned from his post as Three Lions head coach in 1993 and was appointed as Wolves boss five months later.
Despite the undignified end to his England spell, Taylor led Wolves to their highest finish in 11 years before leaving in 1995.
He later had a second, less successful spell at Villa, but is particularly fondly remembered by Villa fans for all he did for the club upon arriving during their dark days at the end of the 1980s.