Taylor hasn't featured in either of Bolton's opening two Premier League fixtures, and may demand a move before the end of the transfer window if he continues to be overlooked.
Trotters boss Owen Coyle is keen to hold onto the 28-year-old, who impressed with Portsmouth before moving to the Reebok Stadium in 2008.
But with Hammers boss Avram Grant - a former Pompey director of football during Taylor's spell on the south coast - keen to take the talented left-sided star to Upton Park, he could have his head turned.
Similarly, Reds manager Hodgson is deserpate to add another left-back to his squad and wants a player with Premier League experience and one he knows about already.
And the former Fulham boss believes Taylor would be the perfect foil for right-back Glen Johnson in marauding forward from the full-back positions.
Hodgson has previously spoken of his reluctance to sign players on a whim - especially ones he has not scouted as the end of the transfer window closes in.
However, Taylor is a player he is familiar with and one that could come at a bargain price for the Anfield outfit.
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