Ricky Hatton's proposed fight with Manny Pacquiao will not take place after the two sides failed to agree terms.

Hatton's advisors had reportedly agreed a 50-50 purse split with Pacquiao but the Filipino has been pushing for 60-40, apparently turning down a 52-48 per cent offer.

Team Hatton had been due to announce a press conference for Thursday morning to officially call the fight off - pending an 11th hour deal.

However, Richard Schaefer of Golden Boy Promotions confirmed on Wednesday evening that a deadline had passed for a deal to be put in place.

"We're pursuing our other options. That's it," Schaefer said. "The Hattons called me and asked again if we had a signed deal from Pacquiao and when I said we didn't, they said they won't sit around anymore."

Pacquiao's promoter Bob Arum was not amused by his fighter's failure to agree terms.

"Manny decided not to sign. He was unhappy with the terms," he said. "The fight is off. The suits can posture but it's the fighters who have to go in the ring and fight.

"But I am not thrilled right now."

Hatton is now hoping to engage Floyd Mayweather Jnr in a rematch or entice the winner of February's lightweight clash between Juan Manuel Marquez and Juan Diaz to London.

With all three fighters aligned to Golden Boy, Hatton will be ahead of Pacquiao in the queue for a big-money summer showdown.