Mitch Hancox is to stay with York City until the end of the season.
He originally moved from Hereford at the end of October for an initial month which was later extended for a second month.
The news means that one of Hereford manager Josh Gowling's more expensive players will at least have a proportion of his wages paid by York.
"We had every intentions of bringing him back into the squad, however, we weren’t in a financial position to have him back," said Gowling.
