Taylor scored eight goals and claimed eight assists in the Premier League in 2009-10 but his form tailed off in the second half of the season and he has been restricted to a substitute's role in the opening two games of the new campaign.
West Ham have been linked with the winger in recent days but Coyle says he has no intention of selling the former Portsmouth and Luton Town star.
"Matty Taylor is a fantastic player who has had an unbelievable Premier League career," Coyle said.
"He is frustrated at the moment because he has been on the bench and Martin Petrov is in possession of that wide-left berth. I can understand that but he has a huge role to play at the club."