North Queensland winger Taulagi had been expected to overcome a calf issue in time to face Melbourne and make a late charge for selection calculations for Origin II in Perth on June 18.
Instead, coach Todd Payten has omitted the six-time Maroon from his extended squad altogether, with Jaxson Paulo to hold a starting spot on the wing for Friday's away trip.
AAP has been told Taulagi is a chance for selection in round 15 but is rated as unlikely to be brought into the Maroons' set-up given he has not played since round 11.
It means Queensland coach Billy Slater will need to look elsewhere if he wants to replace Valentine Holmes following an underwhelming series opener from the veteran.
Reece Walsh is set for one last chance to push his own selection case.
Brisbane have named Walsh at fullback to face Gold Coast and will give him until captain's run to prove he has completely recovered from the knee injury that sidelined him for six weeks.
Walsh is considered the leading alternative to Queensland fullback Kalyn Ponga, who disappointed in last week's game-one loss.
It comes as Broncos coach Michael Maguire axed Deine Mariner to allow Jesse Arthars and Selwyn Cobbo to line up on the wings against the Titans on Saturday night.
South Sydney's injury woes are finally beginning to ease as Jack Wighton and Cody Walker return from calf injuries to face Canberra.
As a result the Rabbitohs dropped Jye Gray from the 17 despite a superb start to the season, with Jayden Sullivan pushing to the bench in his place.
The Raiders have Jamal Fogarty back from the groin issue that ruled the halfback out of the win over the Sydney Roosters.
A strong NRL debut from rugby sevens convert Nathan Lawson encouraged St George Illawarra to drop Tyrell Sloan, with Christian Tuipulotu back from his hamstring injury to line up on the other wing.
The Dolphins could welcome Jeremy Marshall-King back from a leg injury, naming the hooker in their extended squad.
Cronulla winger Sione Katoa will play his first game of the season against the Warriors after undergoing shoulder surgery, with second-rower Teig Wilton back from his own shoulder issue too.
Elsewhere, Canterbury have named Lachlan Galvin on their extended bench as he hopes to make his Bulldogs debut against Parramatta following a mid-season move from Wests Tigers.
Tom Trbojevic will need another week to recover from his corked quad so Lehi Hopoate will hold the fullback spot for Manly's game against Newcastle.
Gold Coast have lost Jojo Fifita and Sam Verrills to broken hands ahead of the clash with the Broncos, but are hoping AJ Brimson will return from a head knock.
The Titans are applying for an exemption to allow Brimson to face the Broncos, given Saturday's clash comes before the utility clears the usual 11-day return-to-play window.
