According to Yorkshire Evening Post journalist Phil Hay, Lonergan has failed to agree terms with the Championship relegation strugglers.
It’s claimed he is on his way back to Leeds and remain at Elland Road for the rest of the season.
Chris Coleman had been eager to strengthen between the sticks after being left less than impressed by Robbin Ruiter and Jason Steele.
Leeds head coach Thomas Christiansen said in his post-match press conference that he expected Lonergan to join Sunderland.
The Whites will now abandon their search for a replacement amid speculation in Argentina that Arsenal stopper Emiliano Martinez was being lined up.
Sunderland expressed an interest in Leicester City’s Eldin Jakupovic but are unlikely to seal a deal.
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