Barcelona's negotiations with Lionel Messi are over and the striker is considering other offers, the club's president Joan Laporta said on Friday.
Laporta said in a press conference he was not prepared "to put the club at risk" by renewing Messi's contract, with Barca facing huge financial problems ahead of the start of La Liga.
"Yesterday we realised it was over. I had the last conversation with Leo's father," said Laporta.
"I do not want to give false hope. The player has other offers and there is a time limit because La Liga starts soon and he needs time to assess his other options."
Messi reached an agreement with Barcelona to sign a reported five-year contract but with the trade-off that he would earn 50 per cent less per year.
But La Liga's financial fair play rules, which are expected to reduce Barca's salary limit to less than 200 million euros this season, led Laporta to conclude they were unable to complete the deal.
"We could not accommodate Messi's contract," said Laporta, who was re-elected as club president in March.
"The situation we have inherited is abominable and the sports salary bill represents 110 per cent of the club's income. We have no margin for salaries.
"La Liga's rules set limitations and we have no margin. We knew the situation since we arrived but the numbers we have seen are even worse than we thought."
Right now it is not in our thoughts (to sign Messi), absolutely not. It looked like it finished well in terms of (Messi) continuing with Barcelona. In the end it was a surprise for everyone, me included of course, but I think Laporta was clear today the reason why. Pep Guardiola Manchester City manager
We are focused on the club, which is working on the transfer window in a discreet way, and working to improve the team in whichever way possible to achieve the targets we set at the start of the season. Mauricio Pochettino PSG manager
Laporta said Barca could have registered Messi by agreeing to the deal but insisted it was a risk he was not prepared to take.
"We were not prepared to put the club at risk in this way," said Laporta. "Barça had to be in favour of a contract that would mortgage our television rights for half a century.
"I am not willing to mortgage the club for anyone. We have an institution that is above everyone, even the best player in the world."
Laporta said he felt "sadness and disappointment" but that he "did everything possible" to keep Messi, who joined Barcelona aged 13 and went on to score 672 goals in 778 appearances for the club.
"There is a before and after Leo," Laporta said. "Leo Messi has been an icon and has left some historic moments. We have eternal gratitude to him."