The UN-backed Special Court for Sierra Leone has made a formal request to move Taylor’s trial from West Africa to Europe.
Taylor has been indicted for crimes against humanity in West Africa.
"Wednesday the Sierra Leone special court asked the Dutch government to agree to allow the physical judicial process to take place in the Netherlands but it would remain the Sierra Leone tribunal," Dutch foreign ministry spokesman Dirk-Jan Vermeij said.
Liberian President Ellen Johnson Sirleaf has thrown her support behind the proposals to switch the venue following Taylor's arrest in Nigeria on Wednesday.
"We still expect a resolution from the UN Security Council that will allow for a change in venue to a more conducive environment such as the international court in The Hague," Ms Sirleaf said in an address to the nation.
The United States is also pressing for the high-profile trial to be moved to The Netherlands.
The special court in Freetown told the Dutch authorities that Taylor's "physical presence there could endanger the stability of the region". The Netherlands said it would cooperate if strict conditions were met first.
Taylor is considered the single most powerful figure behind a series of civil wars in both Liberia and Sierra Leone between 1989 and 2003, which left around 400,000 people dead.
The 58-year-old ex-rebel chieftain is also accused to a lesser extent of fuelling conflicts in Guinea and Ivory Coast.
Child soldiers
The Sierra Leone court has indicted Taylor on 11 counts alleging crimes against humanity, murder, sexual violence and unlawful use of child soldiers during Sierra Leone's gruesome rebel war.
International tribunals do not impose the death penalty or life sentences, but Taylor could face a lengthy prison term, which given his age could amount to a life penalty, according to a UN special court official.
Victims, many of whom lost limbs and other body parts to hackings that were crassly dubbed "long sleeves and short sleeves", have been rejoicing in Freetown that Taylor is finally behind bars.
The chairman of the Civil Society, Charles Mambu said, "It is a great victory for Taylor to be detained. Justice should take hold now."
In Sierra Leone, authorities have stepped up security since Taylor's arrival at a UN compound where he spent his first night in one of 18 cells for war crimes suspects.
The trial by the Sierra Leone special court will not preclude Taylor from facing similar charges back home in Liberia where a truth and reconciliation commission will soon start probing all atrocities committed over a quarter of a century.
"He (Taylor) committed very serious crimes in Liberia, while he was a rebel chief and as president," especially during the country's 14 years of civil war from 1989 to 2003, said Corine Dufka, west African specialist for Human Rights Watch.
The Liberian truth commission is expected to start working by June and should finish its work within two years.