The Board of Control for Cricket in India have no plans to hold further talks with the rebel Indian Cricket League.
An initial round of meetings in Delhi proved fruitless with the BCCI staying committed to its hardline stance.
They have refused to sanction the ICL as it rivals their own Indian Premier League Twenty20 competition.
"There was a meeting in Delhi between the officials of the BCCI and the ICL to see if there was any common ground," BCCI secretary N Srinivas said in a statement.
"The talks failed and there are no plans for any further meeting."
ICL chief Kapil Dev admits he may now head to the courts to resolve the situation.
"I think with the responsibility of 300 players, you can't really sit quietly," Kapil told Sky Sports News.
"Yes there is the possibility (of a legal challenge). We will see where the ICC want to take it but with the responsibility of 300 players we cannot do nothing.
"If lawyers are the only answer maybe that is what we will have to hope for."
The ICL had appealed to the International Cricket Council for recognition and had even threatened to sue the world body to achieve its ends.
ICC president David Morgan met ICL officials earlier in October but no decision was made on the competition's status.
At the ICC Board meeting in Dubai earlier this week, the BCCI had agreed to hold talks with ICL officials in a bid to find a solution to the problem.