MLBPA player leaders agreed unanimously not to accept MLB's final proposal, and there will be no deal on a new collective bargaining agreement before MLB's 5 p.m. ET deadline.
MLB has threatened to cancel its March 31 Opening Day without a new deal.
The sides will head home after negotiating for nine days and determine next steps for returning to the bargaining table.
MLB's final proposal, which was delivered before 4 p.m. Tuesday, featured an increase from $25 million to $30 million in a pre-arbitration bonus pool each year for the length of the deal, while the union wants to begin with $85 million in the pool and go up by $5 million each year.