Berge impressed for the Blades last season in the Championship, despite suffering through injury, getting six goals and four assists in 33 appearances.
The midfielder is attracting interest this summer and has been linked with Leeds, but German side Werder Bremen are also heavily interested in the Sheffield United star.
Werder Bremen even reached an agreement with Sheffield United to take him on loan for next season with an option to buy and even salary terms agreed.
But despite reaching the agreement stage, the deal has now collapsed, according to German broadcaster Sport1.
There was talk that the newly-promoted Bundesliga side had made €20m bid for Berge to bring him to Germany permanently, but that claim has been rubbished.
Berge is still on the market for the taking and he is still tipped to depart Bramall Lane this summer.
With Werder Bremen failing in their attempts, Leeds still have a chance of bringing in the Norwegian star, if they choose to put in a bid.
