The audacious attempt by Owls boss Terry Yorath to prise Stone away from Villa Park failed because Wednesday could not afford his wage demands.
"We have worked on this one but it has not proved possible," said Yorath.
"I feel he would have been the right sort for us.
"He is the type who could have come in and done a good job."
Yorath is desperate to find an experienced midfielder and had earmarked Stone - currently out of favour at Villa - as the type who could turn the Owl's fortunes around.
However, the two parties could not reach agreement and any deal for the ex-Forest midfielder has fallen through.