Beckham's business group, Beckham Miami United, issued a statement saying city officials determined the proposed site was an "inappropriate location."
The statement said Beckham's group would "spend the coming months weighing alternatives" in the city.
Beckham has traveled frequently to Miami in the last few months to explore the creation of an MLS franchise and has stressed the importance of a downtown stadium location. It was the second waterfront site proposed by Beckham's group to run into local resistance.
The group headed by the former England, Manchester United and Real Madrid star needs to sign a stadium deal before it can win final approval for the franchise from MLS, the top professional league in the United States.
Scrutiny of sports stadium deals has risen sharply in Miami after $500 million in public funding was spent to build a new stadium for the Miami Marlins baseball team.
Public anger over the Marlins Park deal contributed to a 2011 recall vote that ousted former Miami-Dade County Mayor Carlos Alvarez from office.
The Miami Heat's arena deal with Miami-Dade County has also come in for public criticism as being too generous to the team, which is owned by Micky Arison, the billionaire owner of Carnival cruise line.
Beckham's group has agreed to finance a $250 million stadium with seating for 20,000 and to pay rent on publicly owned land.
Beckham's initial preferred site for the stadium, a plot of land near the Port of Miami, faced criticism from Royal Caribbean Cruises and others who argued the stadium would interfere with port operations.
Despite the setbacks, sources close to the Beckham project said the group is committed to building a stadium in Miami. Beckham's partners include Bolivia-born cellphone services billionaire Marcelo Claure and British entertainment entrepreneur Simon Fuller.
In the statement, Beckham said the second site, sandwiched between two museums and the Heat arena, was originally suggested by the mayors of Miami and Miami-Dade County.
"Our package was the most equitable soccer stadium proposal that Miami, or any other city in America, has ever seen - 100 percent privately funded without any local taxpayers money," the statement said.
'The world needs more Canada. NATO needs more Canada. We need you. We need you' Text of U.S. President Barack Obama's speech to the Canadian Parliament, June 29, 2016, as released by the White House:
Algerian club Entente Setif have been kicked out of the African Champions League after fan violence caused their opening game of the group phase to be abandoned last weekend.
Eddie Murphy, an American comedian, actor, writer, singer, and producer is taken by Box-office to make him the 5th-highest grossing actor in the U.S. Eddie Murphy arrives at "Movies Rock: A Celebration of Music in Film," at the Kodak Theater in Los Angeles, Sunday, Dec. 2, 2007. (AP Photo/Chris Pizzello) Eddie Murphy He was a regular cast member on “Saturday Night Live’’ and worked as a stand-up comedian. Murphy was ranked #10 on Comedy Central’s list of the 100 Greatest Stand-ups of All Time. The Hollywood actor Eddie Murphy is set to star in his first film after a five-year break. The movie was directed by Bruce Beresford and also features Britt Robertson.
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