An Innovation Group, established by the Scottish FA’s Professional Game Board, had been exploring the issue of player pathway and development.
A proposal was put forward to the 42 clubs in the SPFL for league reconstruction over three years which would have involved Rangers and Celtic Colts teams entering an expanded League Two from the 2022/23 season.
However, when put to an indicative vote the “proposals fell significantly short of the backing required to merit bringing forward a written resolution”.
It is the latest rejection of the introduction of Colts teams into the league.
An SPFL spokesman said: “We would like to thank the members of the Innovation Group – Stewart Robertson, Gerry Britton, Steve Brown, Iain McMenemy and George Fraser – for their hard work and commitment in putting together such detailed proposals.
“Importantly, their paper has generated wide-ranging debate on how we improve the development of young Scottish players.
“The challenge now is to continue discussions right across the game on how we can maintain the momentum which resulted in the Scotland men’s team qualifying for UEFA EURO 2020.”
The two teams were granted permission by the Lowland League to enter sides into this season’s league for one campaign, although they are unable to win promotion.
A Scottish FA spokesperson said: “The Professional Game Board exists as a forum for strategic discussion on ways of improving the senior game in Scotland. It remains committed to working collaboratively to that end and we thank the members of the Innovation Group for their contribution to this proposal.”