The 29-year-old forward had a loan spell at Birmingham City last season and left Forest in the summer when his contract expired.
Taylor and his representatives have been looking to find a new club over the last few months and he is available to get a contract due to his free-agent status.
The striker has been training with the Sheffield Wednesday first-team squad to keep himself fit and sharp.
He has had offers from League One clubs but he is not interested in dropping down to the third tier of English football.
Taylor rejected the offers on his table from the clubs in League One and is looking to earn a contract in the Championship.
Sheffield Wednesday are taking a close look at him and could consider offering him a deal.
However, for the moment he does not have a concrete offer on his table as he continues to wait to join a new club.