"The accord on the electoral law is dead," Fiano told the media after his party lost a parliamentary vote on a proposed amendment.
Fiano, who presented the law being discussed in the Chamber of Deputies, blamed the anti-establishment Five Star Movement (M5S), arguing they had "killed off" the deal.
M5S leader Beppe Grillo took to his blog to blame the PD for the failed agreement.
"Come on PD, be honest," Grillo wrote.
"Tell us why. If you tell us, we'll pull out and you can pass a law with the psycho-gnome, with Dudu," he added, using his nickname for Forza Italia (FI) leader Silvio Berlusconi and referring to the former premier's dog.
Meanwhile, Berlusconi called for the four biggest parties to keep pushing forward with the deal.
"Today's incident in the House...is not a good reason to shelve this generous effort," Berlusconi said.
"It’s up to the parties that gave birth to that agreement, above all the PD, to continue on the only road that makes rapid elections possible with an adequate election law.
“If [PD leader Matteo] Renzi took the incident as an excuse, he would take on a serious responsibility."
With ANSA