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Star batsman refused to meet ECB's conditions for receiving deal, feeling he had compromised enough.
Kevin Pietersen turned down a four-month contract with England only hours before it was announced he would not be touring India as both sides failed to find common ground despite weeks of negotiations.
Pietersen's return to the England fold was dependent on agreeing a set of conditions which included waiving his rights to any future legal action in employment disputes with the -England and Wales Cricket Board, issuing another public apology for sending text messages to the South African side and pulling out at the last minute from a contract to provide studio analysis from the World Twenty20 for Asian-based broadcaster ESPN.
On Monday, Pietersen wrote to the ECB turning down the four-month contract which came with no assurances for the future. He also believes he made enough compromises after apologising in person to Andrew Strauss and publicly on the eve of the Lord's Test last month.
Pietersen also met other members of the England management when it is understood he guaranteed his commitment to playing all forms of international cricket for England until the end of the next World Cup in 2015.
On a day when fresh details of the frenetic negotiations between Pietersen and the board emerged after weeks of silence, it was also learned that the ECB contacted him yesterday (Tuesday) to open negotiations about a new 12-month central contract. The ECB declined to comment on the matter but the talks are expected to continue while Pietersen is in Sri Lanka where David Collier, the chief executive of the ECB, and Hugh Morris, the managing director of the England team, will also be based during the World Twenty20.
The England squad for India was chosen last week and the selectors were told by Andy Flower, the head coach, not to consider Pietersen.
The squad announcement was delayed while Pietersen considered the offer of the four-month deal which set out that he would not be part of the Test tour to India but would attend England's training camp in Dubai at the end of October which precedes the trip.
He was told the Dubai camp would provide a chance to begin the healing process with team-mates which clearly has a way to go. But Pietersen believes that process will happen much quicker during a Test-match tour rather than a training camp.
A strongly worded statement was issued on Pietersen's behalf yesterday by his PR team after it was announced he would not be touring India. The statement read: "Kevin Pietersen is naturally disappointed about today's decision having gone to great lengths to reach a reconciliation with the ECB.
"Pietersen has met with - and apologised to - Andrew Strauss. He has also met with Alastair Cook to stress his commitment to England and met with ECB Board members, including face-to-face meetings with Hugh Morris, David Collier and Andy Flower, prior to his departure to Sri Lanka.
"At all times, Pietersen had wished his dealings with the ECB to remain private so as not to inflame an already difficult situation.
"His recent silence was not an admission of any wrongdoing, he wanted to explain and apologise to the ECB for the messages exchanged with members of the South African team. He has also made absolutely clear both to the ECB and the England team that despite unsubstantiated allegations to the contrary and repeated media speculation, he did not offer any tactical advice to the South Africans. Pietersen remains available for England."
Geoff Miller, the national selector, did not hold a press conference -yesterday but during pre-recorded interviews with Sky and the BBC, admitted Pietersen's presence posed a serious threat to team spirit and it is clear anger still exists over an issue created by his original behaviour.
"Kevin Pietersen is not in the squad because there are still issues to resolve which have been well documented," he said.
"Yes it is disappointing but it is not just about an individual in a changing room, it is about a team ethic and a team unity.
"It is disappointing that we can't pick one of the best players but I am not prepared to pick the best players if it is creating a problem in the changing room."
Pietersen's deal with the ECB lapses on October 1 and he will be free to control his own diary. He is likely to receive big offers to play Twenty20 cricket in Australia this winter but The Daily Telegraph understands he will insert a clause in any contract stating that England commitments come first.
Without Pietersen the selectors, as widely predicted, turned to new players with calls for Joe Root, of Yorkshire, and Somerset's Nick Compton. Ravi Bopara was dropped along with James Taylor, who played the final two Tests of the summer, with Eoin Morgan earning a Test recall in his place.
Monty Panesar was selected as one of three spinners alongside Graeme Swann and Samit Patel.
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