The 17-year-old arrows sensation became the youngest player to win the PDC World Championship earlier this month and 'The Power' thinks his remarkable number of world crowns could be threatened by 'The Nuke'.
Taylor said: "If he wants to beat my world record, then he can go ahead and do it.
"It's going to be difficult, to win 16 titles you are going to have to be in a lot of finals. It's a lot of darts, a lot of hotels, a lot of miles travelling. He'd have to play for the next 20 years to get close to my record and for 20 years he's got to be dedicated and make sure he does everything right."
Taylor warned Littler that he will have to overcome "Man Utd syndrome" of all the other players trying even harder to defeat him if he is to continue his success.
The retired oche legend said: "You get what I used to call the Man Utd syndrome – and Liverpool have got it as well – where everybody raises their game against you, so you have to be at your best in every round.
"And it can take its toll on you. Especially when you get beaten because everyone questions you: 'Why did he lose? What was wrong with him? Why has his bubble burst?'
"Everybody loves to see you up there, and then they love seeing you get knocked off as well. It's how you take it, but I think he is mentally strong enough to deal with it."
Littler's success has made headlines around the globe and Taylor is pleased that the teenager has been able to transcend the sport in a way he was unable to despite his darting dominance.
He said: "Darts has gone crazy. You wouldn't believe the difference since young Luke came along.
"I'm fine about it, I'm too old for all that stuff now. I've had 40 years in my career, it can come and it can go. I have nothing but credit for the lad, I think the world of him. I think it's great to see darts so popular. I'm fine, I'm loving my life."