A $30.3 billion bid for its Asian life insurance business was rejected by American International Group after weeks of negotiations with British insurer Prudential.

The New York Times reported on Tuesday that the U. S. insurance giant, which has sold several major assets to help pay back $182 billion in federal government loans, refused to budge on its asking price of $35.5 billion.

It has been reported that the rejection thwarts Prudential's goal of growth and derails AIG's federal bailout repayment plans, at least temporarily. The Federal Reserve was set to receive $16 billion from AIG after the sale to Prudential was completed.

It "will not consider revisions" to terms for its Asian life insurance business, American International Assurance, which is based in Hong Kong, AIG announced on Tuesday.

Prudential Chief Executive Officer Tidjan Thiam could lose his job if the deal collapses completely, Howard Wheeldon, a market analyst in London, at BGC, said.

Wheeldon told the Times, "Mr. Thiam could indeed fall on his sword." (With Inputs from Agencies)