Miguel Herrera has been fired as Mexico coach following allegations that he punched a television reporter.
Former Arsenal midfielder Abou Diaby has rejected an offer to join West Brom in favour of finding a new club in France.
Trotters manager Dougie Freedman has awarded the 20-year-old a 12-month deal and he becomes the third ex-Palace player to join the former Eagles boss in the north-west of England. The others are Ross Fitzsimons and Dean Moxey.
Taylor has never appeared for the Palace first team and spent time on loan with Welling last season.
Bolton open their Championship campaign with a trip to Watford on August 9.