Sudan threatened to withdraw from the talks saying Ethiopia insisted on linking them to renegotiating a deal on sharing the waters of the Blue Nile.
Egypt and Sudan invoke a "historic right" over the river guaranteed by treaties concluded in 1929 and 1959.
The Egyptian water ministry, in a statement, said Ethiopia put forward a draft proposal that lacked regulations on the operation of the dam or any legal obligations.
Egypt on Tuesday called for a suspension of meetings with Ethiopia on Addis Ababa's massive dam construction project on the Nile.
Sudan threatened to withdraw from the talks saying Ethiopia insisted on linking them to renegotiating a deal on sharing the waters of the Blue Nile.
