The 22-year-old defender has impressed for the Swans in their debut season in the Barclays Premier League, and recently signed a new four-year contract at the Liberty Stadium.
Gunners boss Arsene Wenger has been credited with an interest in the Welsh international as he looks for an answer to his defensive injury crisis at the Emirates Stadium.
"I'm flattered by the interest from Arsenal," admitted Taylor. "I'm enjoying my football at Swansea but it's a great thing to hear."
Arsenal will get the chance to see Taylor at close quarters when they travel to South Wales to face Swansea next weekend, and the defender says he is relishing the prospect of another tough contest.
"People are already saying what a big test Arsenal are going to be for us," he added. "But the way we look at it, it is also a big test for them coming to the Liberty.
"We want to carry on doing as well as we have been at home and it's about time we won a game against one of the top teams.
"I don't see why they can't be that big scalp. When we played them at the Emirates, we should definitely have got a result. Instead, only a freak goal on the day saw us lose.
"Only Manchester United have beaten us in 10 league games at home and, hopefully, if we can give a good account of ourselves, we can make it a tough day for them."