The Costa Rican international agreed to join the Spanish side at the end of last month for the rest of the season, but will now remain at Craven Cottage.
Fulham boss Kit Symons said last night that the West London club fulfilled their end of the bargain, suggesting that Levante may be at fault for the deal falling through.
"All of the necessary paperwork was finalised here in time for this to be completed, so it's a situation that we can unfortunately do nothing about," Symons told the club website.
"I'll speak to Bryan later, and would obviously like to have him back playing for us as soon as possible.
"It's a tough knock for him, but he's a great character and loves his football, so I know he'll just want to get on and play."
The 29-year-old, who joined Fulham for over £10m in 2011, is out of contract at the end of the season.