His number two
had been placed in temporary charge, but Scally spoke to Taylor on Monday afternoon and he agreed to return to the Priestfield Stadium in a caretaker capacity.
"He will take responsibility for the team with immediate effect," the chairman said.
"He will take charge of our game against Preston on Saturday and thereafter until a permanent appointment is made."
After a playing career highlighted by spells at Crystal Palace and Tottenham, and which brought him four England caps, Taylor moved into management with non-league Dartford in 1986.
He moved on to Southend and Dover before beginning the first of two spells in charge of England's Under-21 team.
His one season at Gillingham ended with victory in the League Two play-off final, after which he accepted an offer from Leicester City.
Following the departure of Kevin Keegan, he also filled in as acting England boss for a game against Italy in November 2000, and named David Beckham as captain,
but they were beaten 1-0.
sacked by Leicester in 2001
and his managerial career then took him to Brighton, Hull,
Stevenage, Wycombe and Bradford prior to a spell lasting just over a year as head coach of Bahrain's national team.
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