City Search For New Keeper
Taylor confirmed there's no chance of resurrecting the move: "Sergio changed his mind for whatever reason and he's definitely not coming.
"I've spoken to his agent and basically Sergio lost somebody very close to him in his family. It really upset him and in the end I think it made him realise that he perhaps wanted to stay in Portugal.
"His heart is not in coming to us so I've got to get on with finding another keeper. The hunt is on."
The first stage of the hunt could see Taylor return to Brighton to try and persuade Michel Kuipers to come back to the KC Stadium. The 30-year-old Dutchman had a short loan spell with City last season when Alan Fettis was injured. However, he may be reluctant to come back if he'll only be sitting on the bench.
Taylor might even try using his title of England Under-21 manager to get a youngster from a Premiership side on loan, although an older custodian may be preferred due to number 1 Boaz Myhill's lack of experience.