The 38-year-old Northern Ireland international goalkeeper has made just one Premier League appearance for Blues this season and that was only because on-loan from Manchester City keeper Joe Hart was not allowed to play against his parent club when the two sides met in November.
However, amid reports that Hart is likely to be spending another season on loan with Blues, Taylor has admitted to being settled in the Midlands and would like to prolong his stay at St Andrews.
"It has been frustrating because, as a professional, everybody wants to play but unfortunately, as a goalkeeper, only one player can take that position," Taylor has said.
"At the moment Joe has got the jersey and is doing fantastically well which is making it extremely difficult for me to get into the team.
"But it would be great if I can continue at Birmingham. I will have to sit down with the club at some stage and still feel I have got a lot to offer on the playing front.
"In the only league game I played, against Manchester City, I was really pleased with my own performance.
"I would prefer to be in the team but, should Joe's form dip over time, hopefully the manager would be fair to me and give me my opportunity.
"Other than not being in the team, I am absolutely happy with everything. My family are settled so it would be great to continue at Birmingham."