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Published 07:42 1 Feb 2019 GMT
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A statement from Swansea, published in the early hours of Friday morning, clarified matters (as well as explaining that captain Leroy Fer would also be staying with the club).
'Swansea City can confirm Daniel James will not be joining Leeds United, while skipper Leroy Fer will also be staying at the club,' the statement read.
'James travelled to Elland Road today (Thursday) to discuss a loan move with a view to a permanent transfer on enhanced terms should the Championship leaders secure promotion to the Premier League.
'However, the clubs could not agree suitable terms and the 21-year-old will return to Swansea'
The Welsh international will now return to the club, who face Bristol City away on Saturday afternoon. It remains to be seen if James will be included in their squad for the game.World Cup 2026 prize money: The staggering amount the winners can earn revealed
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