In his column for the Daily Express, Taylor wrote: "Villa expect to have a new man in charge soon. What they must not do is appoint Kevin MacDonald as the manager.
"Villa are a club I have a lot of affection for, having worked there twice as a manager and also been on the board.
"This is their opportunity to remodel how the football side of the club is run and probably their best chance of breaking into the top four.
"When I was managing them, MacDonald was there. He has been there a long time and I have great respect for his knowledge and coaching ability.
"That is why Villa should appoint him as head coach, his responsibility beginning and ending with the first team and getting out on the training pitch with them. That is what he is best at.
"If they make MacDonald the manager in the old-fashioned way, they will not be getting the best out of him. It will be a waste."