The former Shrewsbury Town and Crewe Alexandra striker, 26, had been expected to move to the Glovers on loan until January with a view to securing a permanent move.
However, Vale boss Lee Glover explained the two clubs were unable to agree a transfer fee.
He told the Sentinel: "At the end of the loan deal Yeovil were going to have to pay money for him. Obviously, they haven't offered what the chairman wants.
"He's a valuable part of our squad and hopefully Luke can now get his head around it and do well for us."