The 20-year-old, poised for an appearance at Wembley with Fleetwood in Monday's Sky Bet League 2 play-off final against Burton, has signed a new-three year deal with Leeds.
"I think my loan at Fleetwood this season has been massive for me," Taylor told Leeds' official website.
"Hopefully on Monday we will get promoted and that will make it a successful season.
"I feel that it has been a massive part of me getting this contract and the time has improved me as a player. I've enjoyed every bit of it."
Taylor has made the left-back spot his own during a season-long loan with Graham Alexander's side, making 41 appearances, and is primed to make the first-team breakthrough at Leeds.
"I've had a few ups and downs since I first made my debut for the first team, but I feel that I've really kicked on this season," he added.
"Playing week in, week out has helped me massively and I feel that I have improved as a player."