The trade was denied on Thursday after Chandler failed his physical.
"We welcome Tyson back with open arms," Hornets general manager Jeff Bower said in a statement. "We went into this trade to garner more frontcourt depth to add to our team as we continue our push towards the playoffs. We expect Tyson and the rest of our big guys to step up to the challenge."
New Orleans was looking to open up cap space with this trade, but it looks as if those hopes have been shot. Chandler has been underachieving this season averaging a mere 8.8 points and 8.3 rebounds per game this season and missed 18 games due to injury.
Chandler had been on the sidelines for the Hornets' last 12 games leading up to the All-Star break, with a sprained left ankle.
No specific reason was given as to why Chandler did not pass his physical.
Information from the Associated Press was used in this report.
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