Owls boss Darren Moore wanted Cannon at Hillsborough for the second half of the season as his side push for promotion from League One.
Cannon was pushed for by Sheffield Wednesday, but he is joining Championship side Preston North End on loan from Everton.
Preston are paying a large chunk of Cannon’s salary during his time at Deepdale.
However, it is claimed Sheffield Wednesday did come very close to getting a deal in place for Cannon.
The Owls have been left disappointed though and will have to now look at other options to beef up their attack.
They are expected to ship out Callum Paterson this month, with Hearts closing in on a deal for the attacker.
Paterson has struggled for regular game time at Hillsborough this term, but has started Wednesday’s last four League One games.
