NHL Commissioner Gary Bettman issued statement, which read: "Every professional sports league owes its very existence to its fans. Everyone associated with the National Hockey League owes our fans an apology for being unable to accomplish what is necessary for our game and our fans. We are truly sorry."
The league's final offer was for a $42.5million salary cap per team. The players' last proposal was for $49 million.
It means the NHL becomes the first North American professional sports league to lose an entire season to a labour dispute.
The league has locked out the players since September and more than two-thirds of the season has already been lost.
Nearly 400 NHL players have been competing in Europe during the lockout. Others are playing in North American minor leagues.
