Sources with knowledge of the negotiations said the BBC's Thai-language output was an obstacle in discussions about renewing the 20-year lease on the complex, one of the network's main shortwave broadcast stations for Asia.
The suspension comes as the World Service rolls out its largest foreign-language expansion for decades.
The centre's large red and white transmission towers in Nakhon Sawan 150 miles (240 kilometres) north of Bangkok beamed local language news into tightly-controlled countries such as China and North Korea, and into places where many still rely on radio like Pakistan and Afghanistan
"Despite extensive negotiations, we have been unable to reach an agreement to re-commence transmissions," the BBC said in a statement.
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The BBC World Service, part-funded by the British government but editorially independent, currently produces uncensored news in 29 languages.
The Asia transmission station moved to Thailand from Hong Kong in 1997 after the city was handed back to China.
The BBC did not give details of why the talks broke down. But two sources said its Thai-language service had become a sore point.
Thailand's royalist establishment was incensed by a profile of new King Maha Vajiralongkorn which the BBC Thai service published following the October death of his father King Bhumibol Adulyadej.
The unvarnished profile was published out of the BBC's London office. It went viral in a country unused to seeing unfiltered reporting of its monarchy.
A dissident student leader was charged with royal defamation for sharing the profile, the first prosecution under Vajiralongkorn's reign.
Sansern Kaewkumnerd, head of Thailand's government Public Relations Department, confirmed discussions had faltered but did not say why.
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