Hugo Chavez has been pursuing mediation for months |
The decision was announced two days after Colombia set Mr Chavez a deadline of 31 December to reach a deal.
It followed a direct telephone call from Mr Chavez to the head of Colombia's army, a spokesman for Colombian President Alvaro Uribe said.
Mr Uribe had requested that Mr Chavez not speak to Colombia's generals.
Efforts 'terminated'
Mr Chavez has met leaders of the Farc rebel group, which holds dozens of hostages in the Colombian jungle.
He had been invited along with Colombian opposition Senator Piedad Cordoba to mediate in the hostage crisis.
But the office of Colombian President Alvaro Uribe said his facilitation efforts were now "terminated".
It is not clear why Mr Uribe did not want Mr Chavez to speak directly to Colombian military chiefs.
The Revolutionary Armed Forces of Colombia, or Farc, wants to exchange about 50 hostages it is holding in exchange for 500 prisoners in government hands.
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