Former England batsman Taylor was forced into early retirement in 2016 at the age of 26 after being diagnosed with heart condition ARVC.
He moved into commentary while also taking a role as a talent scout with the ECB, who have now promoted him to the role of England selector.
“I’m thrilled to be taking up this role with the ECB and once again supporting the England set-up,” Taylor said. “This is an important role and it’s a huge honour to be appointed.
“I have always been deeply passionate about the game and will bring all of my energy and experience - from the Lions, domestic cricket and the international Test and white-ball game - to this task.”
Taylor will form part of a three-man panel that also includes national selector Ed Smith and England head coach Trevor Bayliss.
“I’m excited to be given the opportunity to work alongside Ed Smith and can’t wait to get started,” he added.
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