South African high court judge Steven Majiedt and India's solicitor general Goolam Vahanvati, making up the ICC panel, released a statement blaming "the unfortunate, recalcitrant and inflexible positions adopted by both parties".

It said the two sides' attitudes reflected "what has brought about these problems for Zimbabwe cricket".

The panel will instead use written submissions to compile a report for an ICC executive board meeting on October 16.

The affair began in April following Heath Streak's departure as Zimbabwe captain, shortly after he had questioned the composition of the national selection panel.

His replacement by Tatenda Taibu led to a walkout by 15 white players who argued the team was being selected along racial lines rather than on ability.

"It is a sad day, but it is not the end. There have been some positive strides," said Streak on Thursday.

"This process is part of a bigger process to highlight what has gone wrong, and to make sure that the future is one in which people are comfortable irrespective of who they are, where they come from and what colour they are."

The hearing, scheduled to last three days, began on Wednesday but was adjourned shortly after the first witness testified.

The panel had ruled in favour of an application by lawyer Chris Venturas, representing the players, that three administrators should not be present to hear testimony.

Venturas argued that witnesses would be intimidated by the presence of ZCU board members Ozias Bvute and Max Ebrahim and chairman of the provincial Mashonaland Cricket Association Tavengwa Mkuhlani, since some of the allegations involved them.