Since hearing evidence from Stephenson, General Jones' lawyer Hugh Rennie QC said the general had accepted the journalist entered the base and conducted the interview.
After deliberating for about nine hours, the jury returned to the High Court at Wellington this afternoon to tell Justice Alan MacKenzie they were unable to reach a verdict.
The jury had to first decide if General Jones had defamed Stephenson, and then if they found that to be the case, had to make a finding on damages to be awarded to Stephenson.
For a majority decision to be reached, nine or more of the 12 members must agree.
The foreperson told Justice McKenzie they were all "strong-minded, opinionated" people and he did not believe, even given more time, they would be able to reach a verdict.
The judge then discharged the jury.
Outside court, Stephenson said there was no decision yet on whether to seek a retrial and he would take advice from his counsel on his other options.
He would not be drawn on what those options were.
He was disappointed with the outcome but said he was "delighted" with the acknowledgement by General Jones that the Defence Force accepted he had entered the base for an interview with its commander.
"The main reason we came here, the fact that I did go to the base and I did interview the commander, like I reported, has been conceded by the Defence Force.
"That's what I was fighting for."
He said it had cost a "considerable" amount of money to bring the case to court but he would not say whether others had sponsored him.
Stephenson did not rule out negotiating a settlement with the Defence Force to avoid a future retrial.
He said if the Defence Force had taken down its statement from its website when he asked them to a couple of years ago, "we would not be here now".
