No more ... Diego Maradona's stint as Argentina coach is over (Getty)
Maradona met with
The 49-year-old had said he would sign the contract as long as his entire backroom staff were retained.
Grondona revealed details of the talks to his board and the AFA has confirmed it has decided not to renew Maradona's contract.
A brief statement on the AFA website read: "The president of the Argentinian Football Association, Mr Julio Grondona, made the members of the executive committee aware of the conversation with Mr Diego Maradona, setting out the points which had come out from the meeting.
"The executive committee unanimously resolved not to renew the contract with Mr Diego Maradona as coach of the Argentina national football team."
Maradona said he would no longer coach Argentina after it was eliminated from the FIFA World Cup by Germany at the quarter-final stage, but then revealed he was keen to sign a new contract, as long as he was allowed to retain his entire backroom staff.
Grondona was equally eager for the 1986 World Cup winner to pen a new four-year deal, but one of Maradona's assistants, former Argentina defender Oscar Ruggeri, has been criticised by the AFA chief in the wake of the team's World Cup exit.
Argentina's next game is a friendly against Ireland on 11 August in Dublin, and current Under-20 boss Sergio Batista has been placed in temporary charge for that fixture.
Batista took Argentina's Under-23 side to gold at the 2008 Olympics in Beijing.
AFA spokesman Ernesto Cherquis Bialo added that it hopes to have a new full-time coach installed shortly.He said: "Maradona's requirements were very far from the FA's possibilities.
"For the match against Spain, scheduled for September 7th, we may already have the new coach."
Cherquis Bialo claimed earlier that the AFA does not yet have a shortlist of replacements from which to choose Maradona's successor.
However, Alejandro Sabella, who led Estudiantes to victory in the Copa Libertadores last season and has just renewed his contract with the club, is favourite for the job.
Sabella was Daniel Passarella's assistant coach at the 1998 World Cup.
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