The Reds have been chasing the highly-rated winger for some time, with Wolves' relegation into League One leaving them open to raids from higher levels.
They have, however, maintained that they will only part with key men when suitable terms are tabled.
Forest have been unable to reach an agreement, with discussions regarding possible loan deals and permanent transfers in January having ground to a halt.
Wolves are now keen to bring an end to a disruptive saga and have no intention of meeting with Forest again.
Moxey said in an official statement released by the club: "Our position has been firm but consistent - we don't want to lose Bakary Sako.
"Everyone involved in these discussions is fully aware of what our requirements were to, reluctantly, allow Bakary to leave.
"However, we took the decision to cease all discussions with Nottingham Forest, not because they didn't meet our valuation but because the terms surrounding the offer were unrealistic."