Trundle's own plea last weekend was that he would love to return and he was then left out of the Bristol City squad which fuelled the speculation.
However, the man that sold him last summer for £1m has immediately ruled out any chance of the player returning by telling the Evening Post that it was "very unlikely" that Lee would ever play for Swansea again.
Trunds was a fans favourite in his four years at the club – scoring in excess of 20 goals a season each time. But when Bristol City cam knocking last summer it was difficult for him to turn down and he went and came within one game of the Premiership – the Wurzels lost the play off final to Hull City.
This season has not started well for Trundle and he was left out of last weekend's squad and his future at Bristol City is at the moment looking bleak.
Speaking to the Evening Post, Martinez said "Lee had to make a decision last year and it was difficult for us at the time
"The players who were still here had to react and they have now taken the club forward.
"It's always nice when former players have nice things to say about their old club.
"First it confirms a little bit of what we have said before, that we can take for granted what we have got at Swansea City. And second it shows the human side of Lee Trundle. He has been a special player for this club and he will always be a special person in everyone's hearts.
"But he had to make a decision, with the right or wrong advice, and we had to move on.
"It's hard to tell these things, but I think it's very unlikely that Lee will play for Swansea again.
"There are many factors — financial reasons, the strikers we have got — which make it difficult to see it happening.
"In an ideal world you look to be romantic about it, but when Trunds left it was for financial reasons which haven't changed," Martinez added. "I look back at the legends of this club like Alan Curtis and Leighton James and I think Lee is in that area with them. But he had to make a decision and our players had to take responsibility.
"They deserve respect for that and the players we have now are in front of anyone else.
"Lee is probably not enjoying his football at the moment, but he is a special player and I'm sure he will turn the corner very soon, I hope he can turn his personal situation around very quickly and be a big player for Bristol City."
