The 30-year-old, who signed for £500,000 from Burnley, has damaged cartilage in his knee which swells after matches.
He told Forest World: "I had a cruciate ligament problem in my knee in 1992 and was told at the time that I might have some problems later on in my career."
He added: "This would appear to relate to that injury but I've been told that it's nothing that cannot be sorted by surgery."
Forest manager Paul Hart has already seen the likes of Michael Dawson, David Johnson and Davy Oyen sidelined for long periods this season.
He said: "We are hoping he will be able to get through to the end of the season but it is possible he might need surgery before that. It really is in the lap of the gods."
Should Taylor breakdown, it would only leave Hart with Marlon King as his natural out-and-out experienced striker. Eoin Jess or Andy Reid would probably fill-in with youngsters Westcarr or Weir-Daly perhaps breaking into the squad.