But Villa inserted a recall clause into the agreement and have now decided to bring him back to assist their push for a high finish in the Premier League.
Gerard Houllier's men are not quite guaranteed safety but have a seven-point cushion above the relegation zone with just four games remaining.
Bannan has made seven appearances since linking up with Leeds, with his last start coming in the 2-1 defeat at Derby.
Simon Grayson is sorry to lose Bannan's services but is grateful to Villa for letting him leave on loan. "We always knew there was a possibility that Barry could be recalled and I understand why Villa want him back," Grayson told his club's official website.
"I'd like to thank them for allowing him to come to us. I hope he enjoyed his time here and we wish Barry and Villa all the best for the last few weeks of the season."