Taylor, who had been at Bescot since the summer of 2019, spent a major chunk of his playing career with the Blues.
The Northern Irishman made more than 240 appearances for the club in a seven-year spell, helping them win two promotions to the Premier League and also being part of their 2011 League Cup-winning squad.
Now, the 50-year-old has gone back to St Andrew’s as part of new boss John Eustace’s coaching staff.
Taylor had worked with four different managers after joining Walsall three years ago in Darrell Clarke, Brian Dutton, Matt Taylor and current chief Michael Flynn.
Walsall said in a club statement: "We would like to thank Maik for his hard work and dedication and we wish him well for the future."