The 32-year-old centre-back was expected to move to Blackburn ahead of the end of the summer window next week.
The two clubs had sorted out an agreement that would have seen the defender move to Blackburn on a free transfer.
Batth also had an agreement in place with Blackburn over a two-year deal and was prepared to move to Ewood Park.
However, the defender has been left annoyed by Blackburn dithering over completing the transfer over the last few days.
The veteran centre-back has grown tired of waiting for Blackburn and has pulled out of a deal to join the club.
He has also been left boosted by the fan support he has received from the Sunderland faithful over the last few days.
Batth is now happy to stay at Sunderland and is prepared to fight for a place in Tony Mowbray’s team this season.
