The Frenchman had been set to join the Ligue 1 club for the upcoming season after deciding he wanted to leave England.
Veretout only moved to Villa Park last summer from Nantes for £8m, but he is ready to find a new team after the club’s relegation to the Championship.
However, according to L’Équipe, the 23-year-old will not be joining Marseille on loan after talks broke down.
Veretout had been keen on the switch but it is being reported that his agent was eager for the former France Under-21 international to play elsewhere.
That caused any deal to be delayed and Marseille have now scrapped plans to sign the Villa midfielder and will instead look elsewhere.