Duff was due to reprise her title role in the show on streaming service Disney+, with writer-producer Terri Minsky overseeing the reboot.
However, in January it emerged Minsky had departed amid reports Disney was not happy with her first two episodes.
The entertainment giant is said to have been unhappy that Minsky and Duff were aiming for a more grown-up tone and instead wanted the reboot to be similar to the original series.
At the time, Disney also denied rumours the reboot had been axed, saying it was still being developed.
However, Duff has now confirmed it will not go ahead in an Instagram post.
“I know the efforts and conversations have been everywhere trying to make a reboot work but, sadly & despite everyone’s best efforts, it isn’t going to happen,” Duff wrote.
“We can all take a moment to mourn the amazing woman she would have been and the adventures we would have taken with her.
“I’m very sad, but I promise everyone tried their best and the stars just didn’t align. Hey now, this is what 2020s made of.”
The original series ran for two seasons between 2001 and 2004 and followed the life of a 13-year-old girl navigating her way through school and adolescence.
The new series had been envisaged as showing Lizzie, approaching 30, living in New York and working as an assistant to an interior decorator.