He has agreed a contract to manage Stevenage Borough, currently 4th in the Blue Square Premier division, until the end of next season.
Stevenage, in Hertfordshire, is in a good location for Essex-born Taylor, although to drop out of managing in the Football League comes as a surprise to many.
Steve Butler, formerly First Team Coach under Taylor at City, has left his job as Senior Coach at Ryman Premier league side Ramsgate to join Stevenage's coaching staff.