Negotiations have been ongoing for the last five five-months and began when Taiwan turned down a proposal by the Beijing Organising Committee to place the island next to the Chinese territory of Hong Kong on the prestigious relay route.
The International Olympic Committee in Lausanne, Switzerland told the Associated Press, "a solution between the two has not been found. The route will now have to go ahead without a stop in Chinese Taipei."
A spokesman for the Beijing Olympic organising committee declined to comment on the Taiwan or IOC announcements after being contacted by reporters.
"The key to the issue is that there is a lack of mutual trust between China and Taiwan. The result came from mutual suspicions, and in the end it is people who suffer," said Ma Ying-jeou, the presidential candidate of the Taiwan Nationalists political party.
The failed torch negotiations are a set back for the IOC, which has seen the Olympic movement as a way to overcome political differences between countries, such as China and Taiwan.
