The former Arsenal goalkeeper had been third choice at Villa Park throughout last season and was understood to be keen to find first team football.
But, somewhat strangely, he will now provide cover for first choice City stopper Shay Given at Eastlands with Joe Hart likely to move to Birmingham City on a season-long loan deal.
Taylor never let Villa down when between the sticks but never really etablished himself in the first team.
The 28 year-old, who spent time on loan at Cardiff during the last campaign, will now be hoping to help Barry and co into the Premier League's top four should he get the chance to impress.