The Spurs chief made the 23-year-old Internacional striker his main transfer target during last month’s transfer window, but failed to get him in at White Hart Lane before Thursday’s 11pm deadline.
It leaves Villas-Boas short on numbers in attack for the remainder of the season with Jermain Defoe the only recognised forward at the club given that Emmanuel Adebayor is still away with Togo on African Nations Cup duty.
Villas-Boas also defended the club’s stance over their reluctance to break the bank in order to sign Damiao after Internacional claimed their £13million did not meet their valuation for the player, who has 14 caps for Brazil and was top scorer at the London Olympics last summer.
“We’ve approached this market very sensibly,” he told a press conference.
“I’ve said in our conversations that if (the Damiao bid) was going to go out of proportion, we would step out of it.
“We have made it public before that he is a player that we chase, but we couldn’t agree on the full conditions so we’ve moved on.”
On the possibility of making another bid to sign Damiao in the summer, Villas-Boas added: “No I don’t think (it will happen in the summer).
“It’s probably finished now.”
Wigan Athletic v Southampton - Southampton will be hoping that the recent appointment of new manager Mark Hughes will give them the boost they need in order to get past Wigan in their FA Cup quarter-final on Sunday.
Chelsea will be hoping to brush off their mid-week Champions League disappointment and continue their recent domination of Leicester City when they travel to the King Power Stadium for an FA Cup quarter-final on Sunday.
Charlton have a host of injury absentees as they look to get their League One promotion bid back on track at home to Fleetwood.
Gary Rowett's injury crisis shows no sign of easing as Derby prepare to play host to Championship promotion hopefuls Cardiff.