Fry says that Boyd can leave for Suffolk on loan, as long as Ipswich agree to sign him permanently in January.
"We'd definitely do that - it's up to Ipswich to convince George," Fry told BBC Radio Suffolk.
Fry admitted that he had offered both Boyd and Taylor new contracts at the Posh earlier this summer but the pair turned him down.
He added: "George said 'no disrespect to Peterborough, but I want to join a bigger club'. George Boyd owes us nothing.
"If you look at all the stats, he's in the top five for creating goals in the Championship, he also scores a fair quota, he's been absolutely magnificent for us but the wages he's on, I don't think Ipswich can quite get there.
"That was a stumbling block but he is an unbelievable player and if Ipswich did get him, he would be sensational [for them]."
Peterborough have had a poor start to the season and are the only team in the Championship without a point.