The club says Barnsley of England's second tier League Championship declined to exercise its purchase option on the 20-year-old.
Dike scored nine goals in 22 matches while on loan to Barnsley during the second half of the English season. Barnsley finished fifth, then lost on 2-1 aggregate in the semifinals of the playoff for promotion to the Premier League.
Orlando announced Barnsley's decision on Tuesday. It said Dike will return to Orlando after the U.S. national team's exhibition against Costa Rica on June 9.
Orlando City CEO Alex Leitao has previously stated the club will look to shop rights to player's contract in hopes of a lucrative transfer fee this summer.
"We believe in his potential," Leitao said. "We understand that players, especially in that age, have this desire to go to Europe and play for top tier leagues. I think Daryl has that opportunity, he proved himself to have the opportunity and we will help him to accomplish his potential and his desire."
Information from the Associated Press was used in this report.