The forward appeared set to join the Tigers last week only for the proposed £3.5m move to break down at the 11th hour amid doubts over the Championship club’s ability to fund the deal.
Hull were then hit with a transfer embargo by the EFL when it emerged they still owed Villa a portion of the loan fee which saw Barry join them on a temporary basis for the second half of last season.
Though the embargo was lifted when they paid Villa the outstanding money, the club is still appealing a transfer fee restriction which makes reviving Barry’s permanent move a non-starter.
Speaking over the weekend, Ilicali claimed the failure to complete the payment of Barry’s loan fee had been due to a “misunderstanding” involving a sell-on he claims Hull were due over the sale of another Villa player, Jaden Philogene.
The latter joined Hull from Villa two summers ago for £5m, before then moving back to Villa 12 months ago for £18m when the Premier League club triggered a buy-back option in the deal.
Philogene then moved again to Ipswich in the January window for £21m and Ilicali suggested Hull were owed a portion of that fee.
In an open letter to supporters on Tuesday, attempting to ease supporter fears over the club’s financial position, he wrote: “There are zero issues between us and Aston Villa, in relation to both Louie Barry and Jaden Philogene arrangements, and we are very confident in our appeal case.”
Barry, who made only four loan appearances for Hull before suffering a season-ending injury, is still expected to leave Villa this summer and has several other Championship suitors.
The 22-year-old, a product of Albion’s academy, joined Villa in January 2022 after a brief stint at Barcelona.