Taylor has yet to make his his first-team debut for Forest, but he is highly-regarded within the corridors of power at the City Ground.
The skilful midfielder has progressed through the club's Under-18s side and is now a regular for their Under-23s.
However, with Taylor down the pecking order in the first-team and unlikely to break into Aitor Karanka's plans in the second half of the season Forest are ready to send the player out on loan.
The former Manchester United youngster is ready to go out on loan to gain valuable first-team experience before returning to Forest to challenge for a place in the side next season.
Forest have fieled a number of enquiries from interested clubs in Taylor and they are now asessing their options as to where will be best for the 19-year-old development.