The 20-year-old left-back was due to the spend the whole season at Elland Road but he failed to impress.
He made just six appearances in all competitions and did not feature in a Championship fixture after his debut in August.
In a statement, Leeds said: “We would like to thank Cameron for his efforts during his time at the club.”
Borthwick-Jackson’s departure saves cash in Leeds’ wage budget and frees up a loan spot in Thomas Christiansen’s first-team squad.
Elland Road chiefs hoped Borthwick-Jackson would make the left-back spot his own but Christiansen continued to use Gaetano Berardi.
It became clear he would return to Old Trafford when Leeds sealed the signing of left-back Laurens De Bock from Club Brugge last week.
Borthwick-Jackson’s flop at Leeds is his second sub-par loan spell in the Championship.
He managed just seven appearances for Wolves before Molineux chiefs cancelled the deal.
MORE TO FOLLOW