After months of discussion, the University of Adelaide and the University of South Australia decided to oppose the merger.
The two universities have been in talks since the two universities announced their intention to merge in June.
The councils of both universities approved a six-month partnership to discuss the merger, which would have resulted in a joint report by the end of the year.
In a joint statement, Kevin Scarce, president of Adelaide University, and Pauline Carr, president of the University of South Australia, said the merger discussions "are over now, not until December."
"from the outset, our two universities have identified key stakeholder issues and strategic risk issues that require mutual agreement," the statement said. In the end, we were unable to reach an agreement on the two issues. Instead of continuing to discuss the merger, we think it is best for our universities to close the discussion now. "
The principals thanked their employees, students, alumni, business stakeholders and others for their efforts in this merger discussion.
In emails to staff, students and alumni, the University of Adelaide was happy to merge, while the University of South Australia was not convinced.
President Scarce says his university board still believes merger is best for South Australia in the long run.
David Lloyd, vice-chancellor of the University of South Australia, said his university board considered that "there is no strong argument to prove that a merger should be carried out."
In June, President Scarce and President Carr said the combined university would become Australia`s top-notch university in size, possibly in the top 100 of the world, possibly one of Australia`s most international universities.
Founded in 1874, Adelaide University now has more than 21,000 students and 3000 employees.
The school has three campuses, Urrbae in the south of Adelaide CBD, and Roseworthy. in the north.
Founded in 1991, the University of South Australia has more than 31,000 students and six campuses in South Australia.
A spokesman for Flinders University, the third-largest university in South Australia, said the school was unaffected.
"We are not involved in any joint discussions," she said.
