Casement Park, which has been derelict since 2013, was the only stadium in Northern Ireland included in the UK and Ireland’s successful bid to host Euro 2028.
The Irish FA had backed the plans to host matches at the home of gaelic games in Belfast because of the limited capacity at Windsor Park.
However, the project has been controversial with numerous legal, safety and financial challenges delaying any construction work taking place.
Nelson defended the decision to back Casement Park and said the IFA had showed “huge ambition for our country to bring part of the world’s third-biggest sporting tournament here to Northern Ireland”, adding “Unfortunately, that won’t be happening now.”
Nelson said that the IFA would speak to Uefa, the other host nations for Euro 2028 and the government to discuss what role Northern Ireland could possibly play in the finals.
He added that the association’s ambition is still to “have as big a part as possible” for Northern Ireland.
Host nations for major football tournaments traditionally qualify automatically for the finals. However, given five nations were set to host Euro 2028, there had been uncertainty over how England, Wales, Scotland, Northern Ireland and the Republic of Ireland would be eligible.