The 19-year-old, who made his debut in the competition the previous season, is a member of Wales head coach Warren Gatland's World Cup training squad, which is due to be whittled down to 31 names before the competition kicks off.
Jonathan Davies' absence through injury has created an opening in the centres and Taylor, who won 52 caps and played in two World Cups, believes Morgan is ready to step up to the plate.
"Tyler is a dark horse and certainly has that X-factor," Taylor told the Western Telegraph. "Only George North has come through the system with the same ability to break the game open on his own.
"Tyler has got everything and is one of the most explosive players I have ever seen on a rugby field. He just makes things happen and at any moment can go over from 80 metres. I definitely think he can make a big impact."
Morgan is not the only Rodney Parade tyro in Gatland's squad, with teammates Hallam Amos and Jack Dixon also competing for a World Cup place.
And Taylor, who is now team manager for the Wales Under-20s, has seen the trio develop in recent seasons first-hand.
"Hallam flashed up on our radar in Under-18s," he added. "He has the whole package - size, pace, intelligence and ability to read the game - and there is no reason why he can't step up.
"He is a genuine contender but we need to see him at international level where the likes of George North and Alex Cuthbert have proved themselves.
"Jack did three years of Under-20 World Championships and even in the first one he was a man among boys - physical, strong, brave.
"He is the like-for-like replacement for Jamie Roberts and has the character and work ethic to make it in the long-term, it's just whether this is a World Cup too soon.
"A World Cup is not for development, you need people to step into the front line. Perhaps Jack needs another 12 months but the fact that he is in the squad now shows how highly he is rated by the coaches."
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