Barrow had claimed on Tuesday that Brodie's loan had been extended
York City have overturned the decision to allow Richard Brodie to extend his loan spell with Barrow for a further month, BBC Radio Cumbria understands.
The Minstermen will now recall the England C striker after this weekend's fixtures, meaning he will miss the FA Cup second-round tie against Brentford.
Brodie, 21, has scored four goals in six games since joining the Bluebirds.
Barrow are now hoping to begin talks with York over a possible permanent deal for Brodie in January.
Richard Brodie Factfile
Born 8 July 1987 in Gateshead
Served an apprenticeship as a joiner
Joined York from Newcastle Benfield in January 2007
Scored on his York debut in a 4-0 win against Altrincham
Named in the England C squad for the friendly against Bosnia-Hercegovina this season
Scored two goals on his Barrow debut in the 4-0 FA Cup win at Tamworth
The two clubs could agree a pre-contract arrangement which would allow the player to return to Holker Street before January.
However, it is not known whether York are now willing to allow the player to leave in the transfer window.
Brodie hit 10 goals for the Minstermen last season, after joining from Newcastle Benfield in January 2007.
Barrow's finances were given a lift this week after their tie with Brentford at Holker Street was chosen for live television coverage.
The club will now receive a further �85,000 on top of the �20,000 they receive for reaching the second round.
The tie has been brought forward to Friday, 28 November, with kick-off at 1945 GMT.
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