Kevin Pietersen has been dropped for England's third Test against South Africa over reports he sent negative text messages about his team-mates to members of the South African team.
On Saturday, Pietersen removed his threat to retire but the England and Wales Cricket Board wanted confirmation he had not texted players these reported comments.
"This has not been forthcoming despite timelines being set," England cricket managing director Hugh Morris told BBC Sport.
In a statement, Pietersen said: "To say I am gutted is an understatement."
Pietersen's absence comes at the end of a turbulent week, which began with him hinting that he could retire after the third Test, before renewing his commitment to the England team in a video released via YouTube on Saturday. There has also been an apparent U-turn from the talented batsman to go back on his decision to retire from the one-day format of the game.
The ECB wanted assurances that reports claiming the 32-year-old had sent texts criticising captain Andrew Strauss and team director Andy Flower to South Africa pair Dale Steyn and AB de Villiers were untrue.
The announcement of the squad for the third Test, which England have to win to avoid being replaced at the top of the world rankings, was delayed by six hours and, when it came, Pietersen's place had been given to Yorkshire's Jonny Bairstow.
Morris added: "In the best interest of the team, he will miss the Lord's Test.
"During the past week we have held several discussions with Kevin Pietersen and his advisors.
"Following a constructive meeting it was agreed that a number of actions needed to be completed to re-engage Kevin within the England dressing room.
"A fundamental item was to confirm publicly that no derogatory texts had been sent by Kevin to the South African team.
"We provided an additional six hours this morning to provide every opportunity for agreement to be reached but regrettably this has not been possible."
Pietersen's statement, released after the squad announcement, said: "Naturally, I am hugely disappointed that the ECB have decided not to select me. To say I am gutted is an understatement.
"I had an emotional time at Headingley and the video I released was my way to bring closure to the issues I had at that time. I stand by every word I said in the video.
"The fact is: I love England and I love cricket. This entire episode has been demoralising for me and my family. However, none of this constitutes the end of my career as an international cricketer.
"I wish the team and Andrew Strauss [in his 100th Test] in particular every success next week."
Whatever has happened behind the scenes, Pietersen will be missed by England, especially after his breathtaking 149 innings in the last test.