The current England Under-21s boss is favourite to be named as the Great Britain manager by the British Olympics Association on Thursday.
"He was like Alan Shearer in the dressing room - when he speaks, you listen," Taylor told BBC Sport.
"When I was a player [for England Under-21s] and he was manager, before the games his inspirational speeches were amazing. They'd get you up for the game straight away.
"What better man to take the job than Stuart Pearce?"
The men's football event at the 2012 Olympics allows each nation to select a squad of 18 players, with only three aged over 23.
It will be the first time that Great Britain fields a men's football team at the Olympic Games since 1960.