Madine has not been in the picture at Hillsborough since his recent release from prison and rejoins his former club until the end of the season.
Cumbrians boss Graham Kavanagh declared his interest in signing the 23-year-old before his future at Wednesday had been decided after revealing he had been writing to Madine while the striker was serving his sentence.
Wednesday's head coach Stuart Gray told the club's official website: "Gary needs some first-team football and with the options I have at the moment, he would find it hard to get into the team.
"He is familiar with Carlisle, he has played over 50 games for them in the past, so this is a good opportunity for him."
Madine, who previously played at Brunton Park between 2007-2011, is set to make his first first-team appearance since August when Carlisle take on Tranmere at the weekend.