The official was demoted to the Championship on Saturday after his decision to award Newcastle a penalty in their 2-2 draw at Wolves.
Hwang Hee-chan was adjudged to have caught Fabian Schar when trying to clear the ball but the decision was widely criticised.
Taylor took charge of Preston's home match against Coventry and awarded a spot-kick to the former.
Sky Blues defender Kyle McFadzean was adjudged to have fouled Milutin Osmajic in the area but replays showed minimal contact.
Preston went on to win 3-2 and Taylor was criticised once again, but he will be back officiating in the Premier League on Sunday evening.
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He will take charge of Chelsea's clash at Stamford Bridge against City, who currently sit top of the Premier League.
It will be the ninth fixture he has refereed in the English top flight this season and his second with Chelsea.
Taylor also officiated Barcelona's 1-0 win at Porto in the Champions League, with Sunday his 15th game of the season at club and international level.
Chelsea will enter the match off the back of their dramatic 4-1 win away at Tottenham on Monday night.
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It was a match that saw Spurs go down to nine men, with Cole Palmer's penalty and a Nicolas Jackson hat-trick sealing the win.
City will travel to Stamford Bridge after their Champions League clash at home to Young Boys on Tuesday night.
Pep Guardiola and co. return to the Etihad Stadium after their 6-1 thumping of Bournemouth at the weekend.