Ejaria has made five starts for Liverpool so far this season.
The 19-year-old is one of the Reds' hottest prospects with Jurgen Klopp a huge admirer.
Liverpool had been open to letting him leave on loan to gain vital first-team experience.
Leeds United have opted against signing Ovie Ejaria from Liverpool
Championship Done Deals: Every transfer in during January 2017
Mon, January 30, 2017
Express Sport brings you up to date with every new arrival in the Championship during the January transfer window
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Who has your club brought in during the January transfer window?
Ovie Ejaria has enjoyed a breakthrough season at Liverpool
But the midfielder has sustained an ankle injury and looks set to sidelined for quite a while.
Yorkshire Evening Post reporter Paul Hay claims the player's injury has ended Leeds' hopes of signing him.
"Liverpool’s Ovie Ejaria was mentioned to me over the w/e but he rolled an ankle on Sat and is out for a while," Hay said.
Garry Monk wants to add to his squad this month
Leeds remain optimistic of sealing two transfers before the window shuts tomorrow (11pm).
Villarreal winger Alfonso Pedraza and West Ham striker Ashley Fletcher both look set to sign.