The former Swans winger has failed to make an impression since last year's move.
But Taylor insists: "It hasn't worked out for him but that's why he's got the length of contract that he has, to try and break into the side.
"I'm sure he was aware when he signed that he wasn't going to play the same amount of games he did for Swansea last season. But for him, he's challenging himself at the top level so no-one can begrudge him that.
"People have begrudged him his move but he's tried it at the highest level.
"The amount of quality they have at Manchester City is unbelievable and perhaps they haven't had the injuries to other players which might have given him a chance.
"Things like that happen but he's got plenty of time to break in."