South Sydney coach Jason Taylor has five days to save his job after being issued with a formal breach notice by the NRL club on Thursday.

Taylor has until 5pm next Tuesday to respond to the notice after an investigation by South Sydney management into an altercation with forward David Fa'alogo last Sunday found the young coach had broken the rules set out in his contract.

Fa'alogo and Taylor clashed at the players' end of season drinks at the Forresters Hotel in Surry Hills last Sunday, the intoxicated coach punched to the ground by the departing Kiwi Test player.

Taylor is under contract until the end of the 2010 season and was given a vote of faith by co-owner Russell Crowe as little as two weeks ago, but it is expected he will be sacked over the incident.

"Head coach Jason Taylor has been served today with formal notification of breaches of his contract with the club and has been given until 5pm Tuesday, 15 September 2009 by which to respond to that notification," said the club in a statement.

South Sydney chief executive Shane Richardson refused to elaborate on the club's investigations, but when asked if Taylor's punishment had been decided he said: "No.

"It's been a long and thorough investigation.

"I'm not making any more comment than that."

It has been alleged Taylor had either slapped Fa'alogo across the face or punched him in the stomach, provoking the 29-year-old to retaliate.

Richardson would not reveal what the club's investigations had uncovered, while Taylor's manager Wayne Beavis also could not shed any light on the incident.

"We have only just got the breach notice," said Beavis.

"We have not seen any footage or statements.

"The rules of natural justice must apply."

Fa'alogo will join Huddersfield on a four-year deal next season, but as he remains under NRL contract until the end of October he can officially be sacked for his role in the incident or heavily fined by the Rabbitohs.

He has been ordered to front the club's board at a meeting next Friday, September 18.

"Additionally, player David Fa'alogo has been served today with a breach notice under his NRL playing contract requiring him to appear before the board on Friday, 18 September to show cause as to why action should not be taken against him by the club for breaches of his NRL playing contract and the club's code of conduct."

It's been a tough year for the Rabbitohs, with injuries robbing the club of momentum late in the season as they failed to reach the finals for the second straight year.

Taylor took Souths to the finals in his first year at the club - ending their 18-year finals drought - but times have been tough ever since.

They finished 10th with 11 wins in 2009, taking Taylor's coaching record to just 41 wins from 89 games.

Speculation has already begun about a possible replacement, with New Zealand Test coach Stephen Kearney and fellow Melbourne Storm assistant Michael Maguire touted as the top contenders.

Former premiership-winning coach John Lang is already employed by South Sydney in a football operations role and would be another possibility if the position became vacant.

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