Birmingham boss Steve Bruce is keen to bolster his defensive options with former Arsenal stopper Upson ruled out for the next six weeks with an ankle injury.
Ironically, the England international sustained the problem in Blues' FA Cup win against Blackburn last week.
Bruce now looks set to bid for former England Under-21 stopper Taylor who has been in and out of the first team at Ewood Park in recent weeks.
Rovers boss Graeme Souness is unlikely to want to part with the 24-year-old, but is keen to raise funds to finance a swoop for Leicester City midfielder Muzzy Izzet.
Taylor fits the profile of Bruce's preferred transfer targets of young British players, and he raided Rovers in the summer for midfielder David Dunn.
However, it remains to be seen whether the former Manchester United stopper will be able to prise another highly-rated asset from the Lancashire outfit.
