Facebook has rejected the offer to test a button capable of insulating children from bullying and abuse, Police said.
Officials at the Child Exploitation and Online Protection Centre (CEOP) said management at the social networking site cannot agree on the move.
After waiting for the outcome of in-house talks following a showdown meeting in Washington DC eight days ago, Dr Zoe Hilton, of CEOP, said that her colleagues are "disappointed" that an agreement could not finally be reached.
She said a subsequent promise by Facebook to share more information with police is "simply overdue" and something other firms do "as a matter of course".
Hilton added that moves by the company to promote its own measures were "very little, very late in the day," reports the Telegraph.
The CEOP child safety button has led to an embarrassing public row for Facebook.
The American company has faced an unprecedented fusillade of pleas from CEOP, police chiefs, politicians, charities and campaign groups who support its use.
After the meeting last Monday Jim Gamble, who leads CEOP, said that the firm was "one small step" from "doing the right thing".
However, it has now emerged that the stalemate could not be broken despite subsequent meetings at Facebook's California headquarters.
Facebook has agreed to add the button to its safety and help areas, but was averse to incorporate it on its most popular pages.
The company has also unveiled a redesigned abuse reporting system and offered free advertising worth 5 million pounds to Internet safety organisations.
Officials at CEOP said Facebook is "missing the point" and that they will continue to call on the firm to adopt their reporting process.
They said there are no legal barriers to sharing information, the button is a proven deterrent and that CEOP could handle the volume of reports.