Leeds United had planned to send Bailey Peacock-Farrell out on loan to Oldham Athletic for the whole season.
Oldham had expressed an interest to snap up Peacock-Farrell, and took a look at the youngster in training.
However, the League One side have decided against handing the 20-year-old a deal.
Leeds are still more than willing to loan out Peacock-Farrell, as they currently have so many options in goal.
Thomas Christiansen has four senior stoppers in his squad, and needs to trim numbers in this position.
Peacock-Farrell is still highly regarded at Leeds, but there is a feeling that he needs first-team football, which he cannot get at Elland Road.
Leeds already have Rob Green, Felix Weidweld and Marco Silvestri, who are all ahead of Peacock-Farrell in the pecking order for places with the Yorkshire club.
Oldham, meanwhile, will now look at other goalkeeping options – as they try to find a new custodian for the upcoming campaign.
Receive exclusive football transfer news and updates twice a week to your mailbox
