Last month, it was reported that the theatre composer had cancelled the project amid fears that the corporation would be accused of promoting his new musical Love Never Dies.
The search for a budding actress to play Dorothy in a stage version of L. Frank Baum's novel was the planned successor to Lloyd Webber's previous BBC shows How Do You Solve A Problem Like Maria?, Any Dream Will Do and I'd Do Anything, which made stars of Connie Fisher, Lee Mead and Jodie Prenger.
However, Lloyd Webber has now admitted that the show could not go ahead after he refused to agree to "nonsensical" demands from the BBC. He also hinted that he may decide to work on an ITV version of the programme in the future.
"I felt it was extremely difficult to go ahead with the BBC, who want to do The Wizard Of Oz," the Daily Express quotes him as saying. "Last year there was a bit of criticism about the BBC using licence payers' money to show me promoting Oliver, even though it was not my musical.
"Personally, I think it's nonsense. The BBC has said we cannot mention Love Never Dies. If every paper is mentioning it and there's no mention of it on the programme it looks curious.
"On ITV, it doesn't matter as it's not using licence payers' money. I just want to enjoy putting the show on at this stage of my career and I don't want the waters muddied by unnecessary negative PR."
Actor Kevin Spacey criticised Lloyd Webber's shows for "crossing the line" in terms of promotion last year.