European Council President Herman Van Rompuy chose not to present a new budget compromise to EU leaders after sharp splits emerged between key nations over the figures.
A source said there would be no new proposals from Mr Van Rompuy.
The impasse could mean that no new proposal is presented at all on the first night of the two-day summit, a second source said.
Mr Van Rompuy had been expected to present a revised budget plan to leaders earlier today.
However, that was delayed by more than five hours as meetings among EU leaders showed deep differences in individual ahead of the summit.
The EU leaders' summit in Brussels is being held to try to agree a €1 trillion budget.
The leaders failed to secure agreement during discussions last November.
Taoiseach Enda Kenny has said that he detects a willingness among the other EU leaders to agree a figure tonight.
Speaking on RTÉ's Nine News he said there was currently a great disparity between the figures currently on the table and the discussions could go on until the morning.
Mr Kenny said that he addressed the leaders earlier to say Ireland as Presidency holder would assist European Council President Herman Von Rompuy to conclude a deal.