Sunderland confirm departure of six youngsters from club's academy setup
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Taylor made his first-team debut under Phil Parkinson in the 2019/20 campaign, and impressed the then Black Cats boss to earn a new deal last summer.
However, he has struggled for senior gametime this season and has seen Oliver Younger rise to senior contention.
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Hide AdMidfielder Jake Hackett, who has spent a number of years in the club's academy setup, is also set to leave the club.
Hackett made three appearances in the group stages of the Checkatrade Trophy campaign in 2018/19, and has been a regular in the U23 side since then.
Elsewhere, Ryan Wombwell and Bobby Beaumont will leave the club, with Wombwell agreeing a deal to join National League North side Gateshead.
Striker Lee Connelly, who spent much of the 2020/21 campaign on loan at Alloa Athletic, will also leave the club.
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Hide AdConnelly made one senior appearance, featuring in a 3-2 EFL Trophy win over Grimsby Town in the 2019/20 campaign. He scored one goal in his sixteen appearances on loan in the Scottish Championship last season.
Striker Mitch Curry, who joined from Middlesbrough last summer and made his league debut against AFC Wimbledon at the Stadium of Light late last year, has already agreed a deal to join Inter Miami.
He is currently on loan at Fort Lauderdale CF.
A club statement said: "We would like to place on record our thanks to all six players and wish them the best of luck in their future careers."