Published Wednesday, 04 January 2012
Speaking to UTV's Political Editor Ken Reid, Mr Elliott said that his party's grassroots members would not buy into any merger which had been proposed by Tory peer Lord Feldman.
The UUP leader spoke out after the Conservative peer wrote in Wednesday's Belfast Telegraph about the discussions that broke down before Christmas.
Lord Feldman said the UUP had made a mistake not to push ahead with the plans that he described as "bold and sincerely made".
He said the idea was to set up a modern, centre-right, pro-union party.
Tom Elliott says he is and will remain an Ulster Unionist. He says there was no chance of the party disbanding.
UTV's Political Editor Ken Reid on Twitter (@KenReid_utv)
Mr Elliott said: "We, in the Ulster Unionist Party, are somewhat disappointed that we had discussed a number of options with the Conservative Party over the last eight weeks."
"The Conservatives were only interested in talking about the one thing and that was about the disbanding of the UUP and merging with the Northern Ireland Conservatives."
"To me, that was not acceptable and I wasn't going to put that to our party and quite clearly I felt the Ulster Unionist members among the grassroots would not buy it."
Asked about the current state of the relationship between the two parties, Mr Elliott said that at the national level there is still a good bond.
He said: "We still have common themes, we still have common goals and we want to see the union progress."
"At a local level, there are difficulties and that goes back to the Westminster election of 2010 and the selection of candidates."
"If it had been left to the national Conservatives and ourselves, we probably would have had a continuing deal."
The Fermanagh South Tyrone MLA said the initial letter from Lord Feldman proposing the merger had taken him by surprise.
He said: "I would have liked more discussion on it. It came out of the blue to us and we were somewhat surprised."
Mr Elliott said that he and his colleagues would continue to work with the Conservatives at the national level.
He said: "At the national level we will want to feed into them the issues that are of significant importance to the people of Northern Ireland."
"But at the party level, I am Ulster Unionist Party born and bred and I will remain that way and I will continue to fight the Ulster Unionist corner here in Northern Ireland," he said.
The Tories say they are now set to form a new party in Northern Ireland after their offer to merge was rejected.
They say they will fight elections and run against UUP candidates in the region.