The International Cricket Council's bid to end a dispute between the Indian board and the nation's rebel Twenty20 league ended in failure on Monday.
The Indian Cricket League's (ICL) application to be recognised as unofficial cricket will now go before the ICC Board which meets in Dubai in April, the ruling body said in a statement.
ICC president David Morgan was disappointed three-hour talks in Johannesburg proved fruitless.
"I'm grateful to all parties for coming together with the best of intentions and the discussions took place in a friendly and cordial manner but, unfortunately, we were not able to come to a successful conclusion," he said.
The ICL, bankrolled by the Essel group, one of India's largest media firms, launched the league following India's triumph in the inaugural Twenty20 World Cup in 2007.
It signed overseas players, particularly from Pakistan, New Zealand and Bangladesh.
However the Board of Control for Cricket in India (BCCI), concerned the league would undermine its position, refused to recognise it and persuaded other national boards to ban players who signed up.