Taylor was most recently the manager of English Football League One side, Gillingham, a job from which he was relived on 31st December, 2014.
A long and distinguished playing career saw the 62-year-old winger turn up for Tottenham Hotspur and Crystal Palace among others in a career spanning almost 20 years.
Known for scoring goals, Taylor also represented the England national team scoring twice in his first two appearances, a feat that was only matched recently by Rickie Lambert.
Kerala Blasters, last year had David James taking on the role of player-manager ably assisted by current Dempo manager, Trevor James Morgan who served as an assistant coach.
In a managerial career starting from 1986 when he took charge of Dartford while still a player, he managed a flurry of English clubs including current Premier League clubs such as Hull City, Crystal Palace and Leicester City among others.
He has also taken charge of the England U21 and U20 teams while also serving as a caretaker manager for the England senior team for a single game.
Taylor has also managed Bahrain national team back in July, 2011 but was sacked only an year later, in October 2012.
Taylor was optimistic as he took charge and hailed the massive support for the Elephants in the first season.
"ISL inaugural season was a huge success and I’m sure it will get better and better. The league had laid strong foundation in its first season to nurture Indian football," Taylor said.
"I’m personally impressed with the support that Kerala Blasters have received in the inaugural edition. I am looking forward to working with the team and share the passion for football with the fans,” he added.