Villa Linked With Taylor
However, Tigers chairman Adam Pearson says that it will cost Villa if they want Taylor, as he still has two years remaining on his contract.
He said: "If a Premiership club does come in for the manager then there is something in his contract - an understanding - which enables him to talk to them. There is also a set figure of compensation that the club would need to pay to release him.
"But to be honest I have not heard anything about this and I have certainly not had a call from Aston Villa asking for permission to speak with Peter. We would expect this sort of rumour about a manager like Peter who has a good reputation within the game."
Former City manager Brian Little has also confirmed his interest in a return to Villa Park.
Meanwhile, Pearson has revealed City are set to sign full-backs Andy Dawson and John McDermott in the summer, along with Tranmere midfielder Jason Price.