Taylor's assistant and former East Bengal coach Trevor Morgan will "assume the responsibilities of Kerala Blasters team" from here on.
Taylor, who has managed England national team for one match, has been under pressure for sometime as Kerala Blasters, co-owned by cricket icon Sachin Tendulkar, has not won a match since their lone victory in their lung opener on October 6.
Since that win against NorthEast United at home, Kerala Blasters have drawn once and lost four times, including the 2-3 defeat against FC Pune City in their away match yesterday. They are now at the bottom of the eight-team league table.
"Trevor Morgan will presently assume the responsibilities of Kerala Blasters team," it added.
Kerala Blasters finished runners-up last season.