The Icelandic club feel that the 18 year old is worth more than is being offered by the Sky Blues and Dutch side AZ67 Alkmaar and are now trying to tout the winger to other clubs.
"Our negotiations with AZ Alkmaar and Coventry have come to a halt," Breiðablik Chairman Einar Kristjan Jonsson told the Icelandic Press.
"Gudmundsson has a desire to move abroad and we fully understand his ambition. But I can't disclose why these dicussions have come to a halt.
"We have received a lot of inquires for Gudmundsson over the last few months but in the last few weeks discussions have only been with Coventry and AZ Alkmaar. The next thing to do is to see if the other clubs are still interested and hopefully this will be sorted in the not too distant future.
"The negotiations have not gone they way we would have liked so its more than likely that Johann Berg will play for us next season."