Allianz had been seeking a deal to put its name on the stadium being built by both teams in the Meadowlands.
The deal could have been worth about $30 million a year to the teams. The stadium is scheduled to be completed for the 2010 season.
Allianz once insured Nazi death camps and refused to pay life insurance claims to its Jewish clients -- instead granting the proceeds to the Nazis.
The proposed deal was criticized by Jewish organizations, Holocaust survivors and football fans who said seeing the company's name emblazoned on the stadium would be a constant reminder of the company's ties to the Holocaust.
The New Meadowlands Stadium, the company building the stadium, said Friday it was no longer in discussions with Allianz.
"We are continuing discussions with other potential partners for the new stadium and look forward to the summer 2010 opening of this new icon for our region," the statement said.
Allianz spokesman Peter Lefkin confirmed that talks were off.
Its officials contended that the firm had atoned for its former support of the Third Reich by supporting reparations programs and working to become a responsible company. Allianz said it should no longer be held accountable in 2008 for the company's record during World War II.
Steven Korenblat, an attorney who represented Citigroup in its naming rights deal for the New York Mets' new stadium, noted that German companies such as Daimler-Benz and Deutsche Bank that had connections to the Third Reich have higher profiles in the U.S. than Allianz.
"I don't think this is a made-up controversy," Korenblat said, referring to Allianz negotiations. "For those who have strong feelings about it, it's genuine. My view is that we should continue to remember the past and continue to speak the truth, but at the same time we should allow Germany and its corporate citizens to move forward."