Fellow player Ryan Bailey has also been released by the club in mysterious circumstances.
“That’s all I can say as far as we’re concerned. For legal reasons we can’t say much more.”
The announcement comes as the 2017 League 1 champions prepare to return to their Manchester base from their week-long warm-weather training camp in Portugal.
Taylor was a big acquisition for the North American club looking to secure promotion to the English Super League this season.
“The club thanks the players for their efforts and we wish them well in their future careers.”