"It's the federation that have decided to change because recent results have not been good," said the former Leicester City boss who led England for one game against Italy in 2000.
Taylor told Reuters that recent defeats were the result of the players not being match fit because of the lack of league matches.
He denied that political strife in Bahrain had affected performance.
"Some players have good talent but some players need to be stronger, they need to work on the physical side as well as the football side," he added.
Bahrain, who have never reached a World Cup and are ranked 115th, were knocked out of 2014 Asian World Cup qualifying in the third round.