AT&T won't sell smartphones from Huawei, sources told the Wall Street Journal.

Huawei was rumored to be in talks to sell its Mate 10 smartphone through AT&T by February. It would have been the first time the Chinese company, which is currently the world's third largest telecommunications equipment manufacturer, partnered with a major U.S. carrier. The deal was expected to be announced at CES in Las Vegas on Tuesday.

However, the breakdown in the deal means Huawei's foray in the American market will be delayed.

AT&T and Huawei did not immediately respond to CNBC requests for comment.

- Additional reporting by Todd Haselton.