The NBA is facing the possibility of a complete shutdown after talks aimed at avoiding a strike broke down.
The owners and players are trying to thrash out a new deal before the current agreement ends on 30 June.
But negotiations have been called off and the NBA is heading for a shutdown similar to the one that wiped out the entire 2004/5 NHL season.
"There are no more meetings scheduled at this time," said NBA deputy commissioner Russ Granik.
"We are at a loss as to how we can possibly reach a new deal that is in any way consistent with the principal terms that we have been discussing for many months."
The previous agreement came into force in January 1999 after a shutdown of more than six months.
"We're making every effort to get a deal done," said National Basketball Players Association executive director Billy Hunter.
"We have to adopt a position. If we don't get a deal and we have to go to the mat, we go to the mat."
The parties are at loggerheads over reducing the maximum contract length, trimming annual salary hike percentages of long-term deals and raising the minimum age for NBA players.
NBA commissioner David Stern says the new deal is only a 'tweak' of the old one but Hunter disagrees.
"One man's tweak is another man's grab. They are doing more than tweaking," said Hunter.
"It's a give and take. If we give something, we expect something in return."
Talks that were planned for Tuesday never took place and Stern has admitted that the chances of achieving a deal before the end of the current season have changed from 'optimistic' to 'hopeful'.