The midfielder was ruled out of England’s 6-0 friendly victory over Northern Ireland on Tuesday through injury.
But Taylor remains hopeful that, even if she is unavailable at the weekend, it will not be for a prolonged period of time.
He revealed: “It was a slight hamstring strain which is not too serious, but it’ll be touch and go for the weekend.
“Hopefully it doesn’t rule her out but if it does hopefully not too much longer. She’s constantly being monitored.”
However, Taylor was able to provide some positive news on Walsh’s midfielder counterpart Sam Mewis, as she edges closer to a return.
The American has been out of action since sustaining an ankle injury while on international duty at the end of January, but the City boss added that she could make her return this weekend.
“Sam’s managed to train all last week and the week before,” Taylor said of Mewis’ recovery.
“She’s in good shape. We have to be mindful of the period she’s been out, hopefully if she comes in okay she’ll have some involvement at the weekend.”
The games come thick and fast for City, with Sunday’s clash at St. George’s Park preceding the first leg of our Champions League encounter with Fiorentina in midweek.
But while Taylor welcomes the busy fixture schedule and believes it is a result of their success across the season so far, he has called for his players to focus on the short term.
He said: “We have an eye on the bigger picture but it’s about giving maximum effort.
“We’re in a healthy position and that's something that we’ve been able to do because of the effort the players have put in.
“I don’t see a change in mentality. Everyone looks up for the fight and we’re ready to put the effort in.
“I don’t want anyone not giving maximum effort with one eye on Fiorentina.”