Do the same thing on the signup page: If the email is already registered just progress the same way - send an email to that address and notify them that they already have an account.
well, obviously this will not work for a primary account. It also adds friction the signup process, leading to lower conversion rations. But for some use-cases that may be a valid trade-off. Think dating sites, ..., stuff where knowing that a certain email is subscribed already may be embarrassing or worse (gay dating websites in certain countries).
How do you sign up for Gmail without an email account in this case?