Both clubs agreed a 15million euros transfer deal last week that would see the 23-year-old forward move permanently to the Genoa outfit.
As part of the deal, Italian centre-back Andrea Coda was also set to join Samp from Udinese.
However, Muriel failed a medical at Sampdoria earlier this week and the Blucerchiati reportedly demanded a discount in price, claiming the South American would be out for a month with a muscular problem.
A statement from Udinese read: “Udinese Calcio announces it has interrupted negotiations with Sampdoria regarding the transfers of Luis Muriel and Andrea Coda and it has recalled both players back to the club.
“Udinese takes into account the different recovery period stated by Sampdoria for Luis Muriel’s injury and having further examined the player, it considers convenient in the player and in the club’s best interest for him not to leave.
“Luis Muriel and Andrea Coda will return to the club with the former set to continue his recovery and the latter to join his team-mates in training.”
Samp wanted to strengthen their attacking line, having sold the team’s top scorer Manolo Gabbiadini to Napoli earlier this month.
Muriel has scored 19 goals in 65 matches for Udinese.