NICOLA Sturgeon has rejected a deal over the EU Withdrawal Bill that would have seen Scotland unable to pass laws in certain areas for up to seven years.
The First Minister said the latest offer from UK ministers would restrict the Scottish Parliament without its consent, and could not be supported.
Bur critics insisted she had been left "utterly isolated and exposed" after it emerged the Welsh Government had reached an agreement, arguing the UK's new offer protects devolution.
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It comes amid a continuing row over the Conservatives’ flagship Brexit Bill, which devolved administrations accused of representing a “power grab”.
In a letter to Prime Minister Theresa May, Ms Sturgeon insisted clause 11 of the bill, which deals with where devolved powers will be transferred after Brexit, showed an “imbalance and lack of trust” between the governments.
Scotland’s Brexit minister Mike Russell told MSPs an agreement over how to push forward with the legislation was still out of reach after weeks of “particularly intense” negotiations.
He repeated claims the bill represented a “crude power-grab”, with the UK Government’s latest proposals leaving Scotland unable to pass laws in certain areas for up to seven years.
But Mr Russell flatly rejected suggestions he had been close to a deal over the weekend before being overruled by Ms Sturgeon.
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He said: “The effect of the UK Government’s latest proposal remains this: the Scottish Parliament’s powers could be restricted without consent. This is not something the Scottish Government could recommend the Parliament approves.”
Mr Russell said there were two possible ways forward, including simply removing clause 11 from the bill.
He added: “Both the Scottish and UK Governments could then agree, on equal terms, not to bring forward legislation in devolved policy areas while negotiations on frameworks are taking place.
“Alternatively, we could agree to abide by the present system. In that system any regulations preventing the Scottish Parliament from legislating in devolved matters for a temporary period of time must only be introduced when that is agreed by the Scottish Parliament.
“These are practical, workable solutions to this issue that will ensure the necessary preparations for Brexit can be taken across the UK whilst protecting devolution.”
Whitehall sources suggested UK ministers and officials were on the verge of an agreement at the end of last week, before hopes faded over the weekend.
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The Scottish Government believes more than 100 devolved powers should return from Brussels to Holyrood after Brexit.
But the Prime Minister wants 24 of them to be paused temporarily in order to draw up cross-border frameworks.
Under so-called "sunset provisions" shared with officials on Friday, this would leave Scotland unable to legislate in certain areas for up to seven years, to allow UK-wide arrangements to be put in place.
The UK Government has also proposed making a commitment to not "normally" make regulations without the consent of the Scottish Parliament.
But this was criticised by Ms Sturgeon, who said "it will be for the UK Government, and ultimately the House of Commons, to determine what is normal and what is not".
Mr Russell suggested the deadline for an agreement between the two governments was now mid-May, during the third reading of the bill in the House of Lords.
He will meet Welsh minister Mark Drakeford and Theresa May's deputy David Lidington next week for further talks.
Meanwhile, the Scottish Government has pledged to robustly defend its own alternative legislation, which it introduced in the event that talks fail.
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Mr Drakeford confirmed Cardiff has accepted the draft agreement, adding: "We are now in a different place.
"London has changed its position so that all powers and policy areas rest in Cardiff, unless specified to be temporarily held by the UK Government.
"These will be areas where we all agree common, UK-wide rules are needed for a functioning UK internal market."
Scottish Conservative constitution spokesman Adam Tomkins accused Ms Sturgeon of putting "her narrow nationalist agenda before the good of the country".
He said: "The Welsh Government has signed up to this deal. Yet Nicola Sturgeon, alone, refuses because she prefers to pick a fight with the rest of the UK in order to keep her obsession with a second independence referendum alive."
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