The left-back is currently not in Roberto Di Matteo's plans at Villa Park.
It is reported that the 26-year-old had agreed personal terms and passed a medical with Wednesday ahead of a move and was awaiting a deal to be finalised.
Brighton's Bobby Zamora in action against Sheffield Wednesday's Joe Bennett (L)
Unfortunately for Wednesday Aston Villa chairman Tony Xia has reportedly intervened and cancelled the deal as he does not want to sell to a promotion rival.
Villa faced Wednesday on the opening day of the season and Bennett was not involved. He appears to be below both Aly Cissokho and Jordan Amavi in the pecking order at left-back and Villa boss Roberto Di Matteo was happy to sell him to The Owls before the plug was pulled.
New owner Dr Tony Xia during the press conference
Bennet joined Villa in 2012 from Middlesbrough and has spent time out on loan with the likes of Brighton, Bournemouth and with Wednesday last season.
The 26-year-old will now be looking to force his way into the Villa reckoning, or find a move to a team Xia is willing to sell him to.