Foreign Affairs Minister Murray McCully said he was disappointed the Commission for the Conservation of Antarctic Marine Living Resources had not reached a consensus on the creation of a marine protected area in the Ross Sea region.
The New Zealand-led plan to create a 2.27 million sq km reserve, the largest in the world, was blocked by Russia at a special meeting of the commission in Germany.
Delegations from 25 counties had gathered for six days in Bremerhaven to consider the proposal, and one from Australia, France and the European Union for a network of marine protected areas (MPA) in East Antarctica.
The Ross Sea plan, developed with the US, required approval from all member countries of the commission to go ahead.
Russia was unable to approve the proposal, bringing the meeting to an unsuccessful conclusion overnight.