Taylor and Gloucestershire agree deal
Taylor's future at the club was dependent on Gloucestershire being granted planning permission to develop their Bristol home but the application was rejected by Bristol City Council in January, prompting Taylor's contract to be cancelled.
Hamish Marshall, the former New Zealand batsman, was also given a renegotiated deal but his contract was not subject to the planning application.
Having been given three months to find a new county, Taylor is without an offer ahead of the new season and his 12-year career could now be over. He is currently the England Lions fielding coach and has also been working with Somerset on a consultancy basis.
In a joint statement, Gloucestershire chief executive Tom Richardson said: "We would like to thank Chris very much for his years of service as both player and more recently fielding coach and wish him all the best for the future."
Taylor became the first man to score a century on debut for Gloucestershire with his hundred at Lord's in 2000 - it was also the first debut hundred on the ground. He became captain in 2004 but relinquished the role after Gloucestershire were relegated in 2005.
"I would like to take this opportunity to thank the Gloucestershire fans for their support over the years and wish them every success in the future," Taylor said. "It is with great regret that I move onto the next challenge in my life but look back on my career with many fond memories. I have far too many people to thank for their help. I'm sure these people know who they are and appreciate how grateful I am."
Taylor was Gloucestershire's leading run-scorer in 2011, making 1,139 runs at 40.67, as the county finished fourth in County Championship Division Two.
Alex Winter is an editorial assistant at ESPNcricinfo