The university cited "the division and controversy on the Wake County Public School System board" as reasons not to join forces.
The proposed leadership academies would have allowed high school students on William Peace's campus.
In Tuesday's school board meeting, more than a dozen students and alumni told school board members that high school students were not welcome on the college campus.
Wake County Schools also issued a statement Thursday which said they will "continue discussions in the future at a time that works for both of us to determine what is in the best interest of both organizations and their students."
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