Taylor will manage the entire process along with -- among others -- national selector Allan Border and Cricket Australia (CA) chief executive James Sutherland.
''The five-man selection committee, to be chaired by former Australian Test captain Mark Taylor, will manage the process of recruiting a new Australian coach with John Buchanan's recent announcement that he will not seek re-appointment following the 2007 ICC World Cup in the West Indies,'' CA Chairman Creagh O'Connor said in a statement here.
The committee will decide Buchanan's successor following his decision to step down after next year's World Cup in West Indies.
Taylor said the selection committee faced a difficult task in deciding a replacement for Buchanan who has set quite high standards of coaching during his tenure.
''The recommendation of a replacement coach will be one of the most important decisions Cricket Australia needs to make in the next 12 months, especially given the benchmark set by John Buchanan during his time in the role,'' Taylor said.
''The committee will discuss in the next few weeks the process it will use and the criteria it will set for the appointment,'' he added.
The timing of an announcement regarding the new coach will be one of the issues discussed by the committee during their early meetings.
The selection panel: Mark Taylor (Chairman), Allan Border (Former captain, CA Director), Daryl Foster (CA Director), James Sutherland (CA Chief Executive Officer), Michael Brown (General Manager, CA Cricket Operations)