Taylor who spent three months on loan in 2006 was only offered a one-year contract upon his release from Nottingham Forest, instead the player signed for Tranmere who offered him a two-year deal.
Taylor who is at Doncaster Rovers has failed to score for Donny this season having made 11 appearances.
Taylor will go straight into the Cumbrians squad as they are with out a few key players including Danny Graham.
Crewe midfielder Michael O'Connor looks set for a loan spell after yet again the player was involved in a disciplinary incident on the team bus that travelled down to Brighton on Friday.
Crewe Mad understands that an incident took place between O'Connor and loan defender Marlon Broomes.
The 21-year-old Belfast born player has already been dropped this season when he through another discipline matter with Gudjon Thordarson.
A few teams have expressed an interest in taking O'Connor on loan until the end of the season with teams Blackpool, Stockport County and Wolves all rumoured to be interested.