The partnership allowing Huawei to sell its Mate 10 phone through AT&T was expected to be unveiled during the Consumer Electronics Show in Las Vegas this week. But the venture has fallen through, The Wall Street Journal and Bloomberg reported, citing people familiar with the matter.
The companies did not immediately respond to a request for comment.
Huawei still plans to sell a version of the Mate 10 not tied to a specific carrier. However, the failure to secure a contract with AT&T or fellow US giant Verizon has drastically limited the Chinese company's growth in the American market.
Another Chinese manufacturer, Xiaomi, also has been in talks with major US telecom companies, according to reports.
US lawmakers last month sent a letter to the Federal Communications Commission to review Huawei's smartphone business following concerns the equipment could be used for spying, the Journal reported.