Madine was at the Ricoh Arena for three months and in his nine substitute appearances and three reserve games, he failed to impress large sections of the Sky Blues support but not the City manager who described him as 'one for the future' and ordered Chairman Ray Ranson to begin talks with The Cumbrians.
With Madine having around eighteen months left on his Brunton Park contract, the clubs were unable to agree a reasonable price and now the deal is dead.
Speaking to the Carlisle News And Star, Greg Abott: "We didn't hear anything from Coventry yesterday and it would seem that one is dead.
"I am not going to comment on Coventry and their business, but I think Gary would be slightly baffled as to why they have had him for so long on loan but not come back for him.
"But Coventry are history now - Gary is back in our group and it is now up to him to come along with what we are doing."