HITC Sport understands Newcastle striker to rejoin League One club.
A number of clubs in the Football League had been chasing Toney's signature before Thursday's loan deadline, but the forward has opted to return to Barnsley.
Toney enjoyed a loan spell at Barnsley earlier this season, scoring two goals in eight appearances for the League One side before being recalled in January by Newcastle after an injury to Papiss Cisse.
However, soon after his return to Newcastle Toney suffered an ankle injury which ruled him out of action for three months.
Toney is now back to full fitness and Newcastle are considering loaning him out so that he can get some valuable first-team action under his belt.
The 20-year-old is currently down the pecking order in Rafa Benitez's first-team plans and he was unlikely to play a role in Newcastle's bid for Premier League survival with Cisse now back to fitness.
The 20-year-old joined Newcastle last summer from Northampton Town and he has made four appearances so far for the Premier League club.