It was the second round of intensive meetings this month between Greek Cypriot leader Nicos Anastasiades and his Turkish Cypriot counterpart Mustafa Akinci.
The much-heralded talks in the Swiss resort of Mont Pelerin were supposed to produce a map of the internal boundaries of a future federation and pave the way for broader talks aimed at reaching a deal by early next year.
But like the five days of negotiations earlier in November, the two-day session broke up in the early hours without progress, and with each side blaming the other.
"We are not at all happy and sincerely regret that as a result of the Turkish attitude it was not possible to complete a promising process," Nicos Christodoulides told reporters.
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The Turkish Cypriot leader accused the Greek Cypriot side of insisting on "maximalist positions" on territory and other thorny issues.
The United Nations, which has sponsored 18 months of negotiations between the two leaders in what had been seen as the best hope of a settlement in years, put a brave face on the breakdown.
"The two sides have decided to return to Cyprus and reflect on the way forward."
Despite the failure, UN chief Ban Ki-moon "remains hopeful that a deal can be reached this year and will personally support those efforts", his spokesman Stephane Dujarric said.
Greece, for its part, said Athens was "open" for talks with Ankara on the status of the divided island.
He said Greek Prime Minister Alexis Tsipras, in a telephone call with Turkish President Recep Tayyip Erdogan last Friday, "expressed desire for a bilateral meeting", but no specific date had been set.
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