The former England man has struggled to move on to pastures new following the West Yorklshire club's fall from The Premiership last season.
Barmby's wage demands have hampered his chances of a switch away from The Whites this close season and the club are keen to settle the winger's remaining two years of his contract and reduce their wage bill.
Leeds director Peter Lorimer even admitted that a deal had been reached and stated that the club had little choice but to cancel Barmby's deal for financial reasons.
However, the 30-year-old has revealed that he is still a Leeds United player and that he is looking forward to pre-season next month.
"Contrary to newspaper reports, I have not left Leeds United and am looking forward to attending pre-season training after the summer break," Barmby said in a statement on Sky Sports News.
Leeds United, meanwhile, have announced on their official website that they are in discussions with Barmby regarding the early termination of his contract, but it remains to be seen if a settlement will be reached between both sides.
One club that has shown an interest in Barmby is ambitious League One side Hull City.
Tigers chairman Adam Pearson admitted they would be interested in bringing the winger to his hometown club, but stressed that money would be an issue.
"We understand Nicky is interested in coming to play for Hull City and he is certainly a player who, if he is available, then we will have a look at to see if he fits in with our current structure," Pearson told the Yorkshire Post.
"We are not prepared, however, to break the current level of pay. We are strict on that point, so we will need to see what can be done.
"We owe it to ourselves and our supporters to investigate any options open to us. We will be keeping an eye on developments."
