The TAB-owned Sky Racing will no longer telecast races from NSW and Victoria following the breakdown in negotiations with rights holder TVN.

The short-term contract between the two companies ceased on Wednesday after two years of wrangling.

"The previous long-term contract in place between Sky Racing and TVN expired on 31 December 2012," a Tabcorp statement said.

"It has since formed the basis of multiple short-term rollover arrangements, while the parties worked to agree to a new, long-term arrangement.

"Sky Racing put an attractive package to TVN which has not been accepted. Further, it is clear that another short-term rollover of existing arrangements will not deliver a long-term outcome."

Tabcorp said it remained committed to a successful outcome.

"Sky Racing is committed to agreeing a long-term broadcast rights deal that underpins and supports wagering, which is the biggest source of funding for the racing industry."

However, TVN's chief executive Bruce Mann said the ball was in Tabcorp's court.

"We are deeply disappointed that agreement could not be reached with Tabcorp after two years of protracted negotiation," Mann said.

"We are looking for a fair go for our sport. In fact we were prepared to take less than what we currently receive today. Sky were simply unwilling to give us fair value for our rights.

"Tabcorp is an extremely important partner for the racing industry, but they have repeatedly attempted to drive down the value of broadcasting rights for Australia's two premier thoroughbred racing states, a contradictory position to worldwide media rights trends."

TVN is owned by the racing clubs of NSW and Victoria and holds the media rights to all racing in both states.