Honduras’s interim government has rejected a proposal to solve the country’s political crisis, in effect ending talks with the ousted president.
The delegation’s head said the Costa Rican mediators’ proposal, which would see Manuel Zelaya return as president, was "absolutely unacceptable".
Mr Zelaya’s representatives said they would no longer negotiate with the interim leaders’ current delegation.
Mediators have asked both sides to resume talks in three days.
Mr Zelaya was forced into exile on 28 June and the interim government says he will be arrested if he comes back.
It prevented an earlier attempted homecoming on 5 July.
Mr Zelaya said nothing would stop him from returning to Honduras but that he had not decided when this would be, Reuters news agency reported.
His delegation said it had not ruled out future talks with the coup leaders.
‘Dialogue over’
"I’m very sorry, but the proposals that you have presented are unacceptable to the constitutional government of Honduras," said Carlos Lopez, the head of the interim government led by Roberto Micheletti.
He said Mr Micheletti’s side objected in particular to the first point of Costa Rican President Oscar Arias’s proposal.
That proposes "the legitimate restitution" of Mr Zelaya as the head of a reconciliation government, until early elections are held in October.
Mr Arias also proposed an amnesty for political crimes committed before and after the 28 June coup.
"This dialogue with this commission of the de facto, military coup government is finished," said one of Mr Zelaya’s representatives, Rixi Moncada.
The delegation said earlier that if the interim government rejected the plans, the talks would be "over".
Aristides Mejia, who is representing Mr Zelaya at the talks, said the team had accepted the proposal for reinstating the deposed leader and were "willing to discuss all the other points".
He said if the interim government accepted Mr Arias’s proposal they would "work around the clock eternally to discuss each point".
‘No return’
Speaking to the BBC in Nicaragua on Saturday, Mr Zelaya, said he would not agree to anything that gave concessions to the people who ousted him from office.
Arturo Corrales, representing Mr Micheletti, accused Mr Zelaya of bad faith.
"The whole world heard the statements of Mr Manuel Zelaya Rosales, saying that he cannot stop calling for a constitutional national assembly," he said.
"That strips yesterday’s commission of any authority and negates the spirit of the conversations that have been taking place here, and reaffirms a wish in Honduras to keep violating our constitution and our laws."
Assistant Foreign Minister Martha Lorena Alvarado said on Saturday that the reinstatement of Mr Zelaya was "not negotiable".
"There is no possibility of him returning to Honduras as president," she said.
Mr Micheletti heads a military-backed government, which ousted Mr Zelaya amid a dispute with Congress and the courts.
Mr Zelaya had planned to hold a non-binding public consultation to ask people whether they supported moves to change the constitution.
His critics said the move was unconstitutional and aimed to remove the current one-term limit on serving as president and pave the way for his possible re-election.</p
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