He appeared 44 times for the League One side in the 2017/18 season, helping them to a ninth-place finish in English football's third tier.
Taylor is the 13th player on Rudan's roster for the 2018/19 A-League season which is underway in mid-October.
He fills one of the five allowed import spots, with hopes that Fijian-born striker Roy Krishna will soon qualify as a naturalised kiwi.
"Steven is a significant signing for the football club in what we are trying to create," said Rudan.
"He brings a huge amount of experience and strong leadership.
"We expect Steven to be a success on and off the park."
Taylor said he was excited by the prospect of playing in New Zealand and Australia.
"As soon as I was aware of the interest, I knew it was an opportunity that I couldn't pass up," said Taylor.
"I was here in 2014 as part of the Football United Tour when we played in Dunedin and Wellington and loved the country then.
"I know that I am joining an exciting project under Mark as well as playing in one of the best leagues in the world in the A-League."
Phoenix roster for 2018/19: Nathan Burns, Liberato Cacace, Tom Doyle, Andrew Durante, Louis Fenton, Dylan Fox, Roy Krishna, Ryan Lowry, Adam Parkhouse, Oli Sail, Sarpreet Singh, Keegan Smith, Steven Taylor.