Brunt, last season's most improved player at Hillsborough, was a massive success with his goals and assists although the 22-year-old is currently in the last year of his current deal.
Wednesday rejected a £2million-plus offer for the Northern Ireland international from Fulham earlier in the summer but The Owls have reportedly pulled out of negotiations with the player because of high wage demands.
Both parties have been talking about a new deal although that looks as if it will not happen after Wednesday dramatically pulled the plug on talks.
Meanwhile, right-back Frank Simek has penned a deal keeping him at the club until 2010.
Simek, signed from Arsenal two summers ago, has been in talks at Hillsborough along with Brunt and Glenn Whelan about a new deal and the American international is happy to be staying put.
He told the official site: "I'm thrilled, we've been talking for quite a while and I am happy to commit myself for another three years. I know this club is going in the right direction."