In January it was reported that Streisand had meetings with Gypsy creators Stephen Sondheim and Arthur Laurents about taking on the part of Mama Rose in a new adaptation of the 1969 production.
However Laurent said that although he was convinced Streisand would do the part justice, his writing partner Sondheim eventually decided against the project.
"He said 'What is the point of it?'," Laurents told the Hartford Courant. "He said, 'You want a record because the theater is ephemeral. You don't need a record. The fact that it's ephemeral means you can have different productions, different Roses on to infinity'."
"So I don't want it now," Laurent continued. "I don't want a definitive record, I want it to stay alive."
The writer also suggested that The King's Speech director Tom Hopper had been interested in taking on the project if it had gone ahead.
"I think [Barbra Streisand] is disappointed, she wanted very much to do it," Laurent added. "That would have been a good exit for her career."
Instead, Streisand will next appear opposite Seth Rogen in the comedy My Mother's Curse.