As previously reported, Knight is suing West for $1 million after he was shot in the femur during a 2005 VMA Awards after party where Kanye was hosting.
Knight also says he lost a valuable earring at the club worth $135,000 and paid over $200,000 in medical expenses because Ye failed to have accurate security.
The mediation session to resolve the issue took place Thursday in Miami with Knight and his lawyers meeting with Kanye's legal team.
West was not at the meeting physically but attended by phone.
Knight's attorney Marc Brumer says the two did not reach an agreement however and the case will now likely go to trial.
A lawyer for Ye declined to comment.
The shooter in the 2005 case has not been identified and the case remains unsolved.
Knight and his DeathRow Records empire filed for Chapter 11 bankruptcy in 2006.