Merseyside rivals Everton and Liverpool will not be sharing a new stadium, it has been confirmed.
Talks had taken place, involving sports minister Richard Caborn, with a view to Everton sharing Liverpool's planned new Stanley Park ground.
But the plan was never popular with either set of fans, and unlike Everton, Liverpool were always against it.
A Liverpool council spokesman said: "It's disappointing that both sides have been unable to reach agreement."
The spokesman added: "However, the existing plan for a new Anfield is part of a major regeneration of the Anfield and Breckfield area.
"We fully intend to deliver that because of the economic benefits it will bring to an area which badly needs them.
"Of course, we will also do everything we can to help Everton find a 21st century stadium for the club and its fans."
Everton chief executive Keith Wyness told Everton's website on Tuesday: "We have said all along that we had three options - a shared stadium, the redevelopment of Goodison Park and a stand-alone stadium of our own.
"If there is not to be a shared stadium it would be good that, in future, the City of Liverpool would continue to represent a major centre for football excellence - one which would boast two world-class facilities."
Liverpool chief executive Rick Parry said: "The joint stadium proposal has been thoroughly examined over an extended period of time and has now been rejected.
"But as we have consistently pointed out, this is much more than just a new ground for Liverpool Football Club.
"It has always been about the regeneration of north Liverpool and the benefits it will bring to a local community that desperately needs them.
"With the issue now finally resolved, we hope that all parties involved can pull together to get this project delivered as quickly as possible."
Local MP Peter Kilfoyle told the city's Daily Post that financing arrangements had been part of the problem.
But he added: "I don't think either of the two clubs at board level were ultimately supportive of it either.
"One or two individuals on either side were in favour but it was not enough because most were hostile."
In 2003, Everton shelved plans to move from Goodison Park to a new ground at Liverpool's King's Dock after the projected cost soared to nearly £200m.
The cost of Liverpool's planned move to a new 60,000-seater stadium at Stanley Park has also risen from an estimated £80m to £110m.