Taylor flew home from Bolton's tour of the USA earlier this week to hold talks and undergo a medical at Upton Park.
Bolton have decided to accept West Ham's offer of £2.2million for Taylor, with the 29-year-old entering the final year of his contract at the Reebok Stadium.
A number of clubs are thought to have expressed an interest in Taylor, but West Ham are in pole position to land the former Portsmouth man.
Bolton boss Coyle admits the offer for Taylor was too good to turn down.
"It is a fantastic fee," Coyle told the Bolton News. "Matty will feel it's a good deal for him and we feel it's a good deal for the football club.
"He was going into the last year of his contract and West Ham were offering a three or four-year contract.
"I just think when you looked at the business side, £2.2million was a good deal all round.
"Matty Taylor is a great lad. I've got so much time for him and he goes with our best wishes.
"We've loved working with him, but sometimes in football things move on, people move on to pastures new."