Tesco is understood to have held talks with former Prime Minister Tony Blair about helping the grocer to move into the Middle East.
It has been reported that the two parties have held discussions over a £1m deal.
Blair is currently a peace envoy in the Middle East and is understood to have talked about becoming a figurehead for the retailer’s expansion into the region.
However, the talks are thought to have broken down after the two parties failed to reach an agreement.
Tesco is said to have been “deeply disappointed” by the failure to bring Blair on board as the grocer believed he could use his diplomatic profile to “open doors”.
A spokesman for Blair said: “Tesco is a great British company.
“However, Tony Blair and Tony Blair Associates have never done any work on behalf of Tesco. Tony Blair does not have any commercial relationship with Tesco and has not made any representations on their behalf.
“The vast majority of Mr Blair’s time is taken up by his unpaid activities, principally his role as Quartet Representative in the Middle East, advocating on issues such as climate change and Africa, and with the work of his faith and sports foundations.”