Confirmation that Taylor had already agreed his move to Everton was made by Norwich boss Nigel Worthington.
"Ryan Taylor's one that we targeted, he was one of those with a lot of potential that we would have liked to have brought here," said Worthington.
"But he's gone to Everton - it's a Premiership club and means that he doesn't have to move. He can still live in his home city."
Taylor came through the youth ranks at Prenton Park, starting over 100 games since making his debut in 2002.
The defender has become well known for his deadly free kicks and excelled as Tranmere made it to the play-offs under Brian Little.