The Mexican president has said he will not meet with Donald Trump in Washington next week.
Enrique Peña Nieto took to Twitter to confirm that his administration had informed the White House of the decision.
Esta mañana hemos informado a la Casa Blanca que no asistiré a la reunión de trabajo programada para el próximo martes con el @POTUS.
— Enrique Peña Nieto (@EPN) January 26, 2017
It comes amid a dispute between the two presidents over President Trump's controversial proposal for a wall at the US-Mexico border.
Donald Trump has ordered efforts to get underway to build the wall, which was one of his central campaign pledges.
He has repeatedly insisted that Mexico will pay for its construction eventually - although he has indicated that the US will initially put up the funds.
Last year, Trump put the cost at "probably US$8bn (€7.5bn)" - although other estimates are higher.
In a TV address last night, the Mexican president said: "I have said it time and again: Mexico will not pay for any wall."
The two leaders had been scheduled to meet over in Washington next week, but President Trump escalated the dispute with a pair of tweets earlier today.
The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers...
— Donald J. Trump (@realDonaldTrump) January 26, 2017
of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.
— Donald J. Trump (@realDonaldTrump) January 26, 2017
Speaking this evening President Trump said the two presidents had both agreed to cancel the meeting.
He said the scheduled talks in Washington DC on Tuesday would have been "fruitless" as President Pena Nieto is still refusing to pay for the controversial barrier.