The Newcastle central defender has captained England Under-21's, played for England B, and the friendly against Germany was seen as a chance for his first full cap.
He received the news that Portsmouth defender Sol Campbell is out of the England squad to face Germany at Wembley and the odds shortened even further.
Sam Does NOT Want Taylor To Replace Campbell
32-year-old Campbell had been asked to report for international duty having failed to make any of Steve McClaren's squads since he took over as England coach.
But Portsmouth manager Harry Redknapp confirmed after yesterday's match against Bolton that the former Arsenal centre-back had not recovered sufficiently from a groin injury.
However, Big Sam believes Taylor will benefit from NOT making his full international debut this week.
Allardyce: "Steven is a good young prospect and is ready to have a look and see what it is all about, but he is not ready to play just yet.
"If he can find out what the pressures are like at England level without playing, that will do him good."