Beckham, who is on loan to AC Milan until March 9, played 56 minutes before being replaced. He appeared fatigued, having also played a half for England against Spain on Wednesday.
The English superstar had wanted to make a permanent move to AC Milan, to better prepare him for one last go-round with England in the 2010 World Cup.
After the Los Angeles Galaxy rejected the Italian team's first offer, MLS commissioner Don Garber set a deadline to conclude talks. When Milan didn't counteroffer by Friday, the Galaxy announced the matter closed.
AC Milan coach Carlo Ancelotti remained hopeful to sign Beckham, despite the Los Angeles Galaxy and MLS - which owns Beckham's five-year Galaxy contract - ruling out further talk about a deal.
"We've still got 20 days to close the deal. Galaxy has forced the situation, but there's time before March 9," Ancelotti told the ANSA news agency.
