Alves joined the Black Cats in the summer, but things did not go his way at Sunderland as he struggled for game-time.
The centre-back made no starts for the Black Cats in League One and his three substitute appearances did not total even 50 minutes; he has now been recalled by West Ham United.
Speakman explained that while the player has made discernible progress at the Stadium of Light he did not receive the desired game-time.
After discussions with the Hammers, the Black Cats agreed that the best course for the centre-back was to head back to the London Stadium.
Speaking to Sunderland’s official site, Speakman said: “Throughout Freddy’s loan, we have remained in regular dialogue with him and West Ham United regarding his programme.
“He’s progressed and he’s matured off the pitch, but he’s missing the frequency of games required at this stage of his development and we collectively understand the need for him to be playing regular football.
“Having reviewed this with his parent club, we agreed that it is the natural solution for him to return in January to plan out the second part of the season.
“We thank West Ham United and we wish Freddie well in his career.”
As he returns to London, it remains to be seen whether Alves is sent out on loan again for the latter-half of the season.
The Hammers will be looking to see the player speed up his development and could feel another loan spell is the best course of action.