The Northern Ireland international established himself in Fulham's goal in the second half of last season after the Dutchman picked up a long-term ankle injury in December.
Van der Sar has admitted that he may leave the club in the summer and Taylor knows that both of them cannot stay at the club next season.
"This club isn't big enough for us both," said Taylor.
"I've been told that I will be first choice at the start of the season, irrespective of whether Edwin stays or not.
"But I think the club needs to release one of us and let the other get on with it."
