The East End Park club has been served with a winding-up order by Her Majesty's Revenue and Customs over an unpaid tax bill of around £130,000.
The Pars Community made an offer to buy out the shares of current Dunfermline owner Gavin Masterton in a bid to rescue the club.
However, talks collapsed on Friday after a deadline passed for a response from Masterton, who is owed millions by the club.
A TPS statement read: "TPC has worked tirelessly over many months now and is extremely upset at the outcome of its endeavours.
"We now wish the board of the club well as it seeks to find another solution to its present difficulties.
"The Pars Community has been unable to receive confirmation today from Mr Gavin Masterton's representative that its final, non-negotiable, proposal, made yesterday, was acceptable to Mr Masterton.
"Accordingly, discussions between TPC and Mr Masterton's representative have unfortunately now terminated."