The former Barcelona junior had been on-loan for the season with the Hatters in League One.
He was also with Stockport last term, helping them to win promotion. Barry has scored 24 goals in 44 appearances for Dave Challinor's team over the past 18 months.
Stockport announced: "Stockport County can confirm that forward Louie Barry is set to be recalled from his loan spell by parent club Aston Villa in January.
"Louie’s final game of his second loan spell at the Club will be our New Year’s Day fixture at home to Birmingham City, before the 21-year-old returns to Villa Park for a period of assessment with Unai Emery’s first-team squad.
"He has twice won the League One Player of the Month award this season, as well as the EFL Young Player of the Month award in August, and his form in the first half of the season has helped us to a play-off place heading into the festive period.
"We’d like to place on record our thanks to Aston Villa for trusting us with Louie’s development over the last 18 months, and to Louie for his outstanding contribution during his time at Edgeley Park."