Sacked South Sydney coach Jason Taylor says he can't understand why he was shown the door by the Rabbitohs, claiming he did nothing to breach his contract with the NRL club.

Taylor's contract was torn up on Thursday as a result of his involvement in an incident during an end of season drinking session at a Sydney hotel 11 days ago where he was punched by departing backrower David Fa'alogo.

"I haven't broken the code, I haven't beached my contract," a dejected Taylor said on the Nine Network's The Footy Show.

"We presented a document to these guys (the Rabbitohs board) yesterday with evidence as to why there are no breaches in my contract.

"I can't understand why today I'm without a job.

"I'm gutted - the effort and the time that's gone into the job by myself over the last few years, the relationship that I've built up with the playing group ... to find out today that that's all over and that I don't get a chance to make the most of the work that's gone on the last few years is absolutely devastating."

Taylor confirmed reports he would pursue legal action in a bid to clear his name over what he believed was an unjust course of action taken by the club.

The game's third leading pointscorer of all time said he had attended similar functions in past seasons at the Rabbitohs, and that he had documents verifying his claim that he wasn't intoxicated on the night in question.

"I have three written signed statements from two bar staff and security - completely independent people - who say that Jason Taylor wasn't intoxicated, that he was drinking responsibly," he said.

"I've been at these celebrations that we've had since I've been at the club and I was at these celebrations when I was at Parramatta.

"I have no doubt that if I don't get punched that I've still got a job, because if I don't get punched, the day and my involvement there is exactly the same as every one of those day that we've had (in the past)."

Asked if regretted anything he had done on the night, Taylor said:

"Right now I prefer that I didn't go but I look back on the reasons why I did go and why wouldn't I go?

"I've been unfairly treated in my opinion, extremely unfairly treated.

"It won't end here as far as I'm concerned."

Taylor also revealed he had received messages of support from some of the Rabbitohs players.

He has been replaced by coaching consultant John Lang, who was appointed head coach for the next two season.

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