Fulop rapidly became a fans favourite at the Walkers Stadium until he was recalled from his loan spell at the club on December 31st.
It was thought that a deal would be arranged between City and Sunderland to make the 'keepers move to Leicester permanent.
However, Ian Holloway has refused to make an offer matching the £3million demanded by the Black Cats, much to the dismay of the Foxes faithful.
Meanwhile, Paul Henderson remains in goal for the Foxes until a replacement becomes apparent.