Speaking to the club's official site earlier this morning United boss Brian Laws was keen to point out that every effort had been made to bring Byrne to the club.
"We tried to cover every angle and the club agreed a fee with Sunderland which is something that I didn't think we could do so I thank the board for that," he said.
"Wages were not the problem, the player feels there is still an opportunity of playing in the first team at Sunderland and that the possible relegation could enhance his chances of playing in the first team as he expects a major clearout at the Stadium Of Light."
Laws also made it clear that the deal is not yet necessarily dead and buried, hinting that a deal could be possible in the summer.
"I can see this football club and myself working with Cliff Byrne again in the near future.
"I wouldnt be surprised if we see him here next year."