Barry was banned from returning to Bodymoor Heath after statements he made in a tabloid newspaper.
He was also fined and looked set to stay away with his move to Liverpool on the cards.
However, no fee has yet been agreed for the England midfielder and he now faces the prospect of another season at Villa Park.
Liverpool are still confident of signing Barry but if the stalemate is not resolved by the end of August, he may decide to wait until next summer to leave Villa.
The former Brighton man has a clause in his contact which means he can buy himself out in the summer of 2009.
But for all parties concerned, the best outcome would be Barry signing for Liverpool.
Villa don't want a player who isn't committed to the club and Barry has his heart set on Liverpool.
Arsenal have made an enquiry for the 27 year old, but are not prepared to meet Villa's valuation.