Klaver's Greens had agreed to form a bloc in a new Cabinet with the Labor Party, but Rutte rejected the idea, apparently fearing that a Cabinet made up of five parties would lead to an unstable government.
“It's a great shame,” said Labor leader Lilianne Ploumen. “I would have really liked to negotiate with the VVD and CDA about, for example, raising the minimum wage.”
Rutte, who has led a caretaker administration with limited powers since the March 17 election, said he would reach out to the left-leaning parties on issues such as climate change, emissions and education, “but ... not in a five-party Cabinet.”
Rutte has served three terms as Dutch prime minister and could become the country's longest-serving leader if he leads the next government.
Sigrid Kaag, leader of the centrist D66 party that emerged as the second largest party following the election, said it is now up to Rutte “to find a way out of this deadlock.”
Talks to form the next Dutch government are expected to continue for weeks.
Anti-Islam populist Geert Wilders didn't want to wait for more negotiations and tweeted a call for a new election.