Spaniard Valdes, 34, has made eight appearances for Liege since joining in January, helping them win the Belgian Cup final in March, but is currently injured.
In a statement, Liege said they had decided to play their younger players for the rest of the season.
Valdes' current contract with United will expire this summer.
Former Barcelona player Valdes clashed with United manager Louis van Gaal in July before a proposed move to Turkish club Besiktas collapsed the following month.
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Manchester United goalkeeper Victor Valdes has had his loan spell with Belgian club Standard Liege terminated.