Tom Waterhouse's bid to become an official sponsor to the National Rugby League competition is dead in the water, with both parties walking away from negotiations on a deal that was set to cost the bookmaker $50 million over five years.

The NRL's general manager for strategy Shane Mattiske has told the ABC's Four Corners the parties had "failed to reach agreement around terms with Tom Waterhouse".

No deal: Tom Waterhouse. Credit:Cameron Spencer

Earlier this year, Waterhouse outbid the nation's leading wagering company, Tabcorp, to become the preferred bidder for an official sponsor title.

"We've been negotiating with Tom since the early part of the year and at our Commission meeting on April 19 we reported that we had failed to reach an agreement," Mr Mattiske told the program, which will air on Monday night.