In a speech yesterday night, Duterte criticised the insurgents over deadly attacks against soldiers and police while threatening to categorise them as a "terrorist" group.
"I have decided to cut talks with the NPAs," he said, referring to the communists' 3,800-member armed wing, the New People's Army (NPA).
The Communist Party of the Philippines (CPP) has been waging an insurgency since 1968 to overthrow a capitalist system that has created one of Asia's biggest rich-poor divides.
They were revived last year after Duterte -- a self- declared socialist -- was elected president, with Norway and the Netherlands hosting the negotiations.
"You tell the guys there in the Netherlands: I am no longer available for any official talk. Let's just go to war," Duterte added Tuesday, referring to rebel leaders living in European exile.
Duterte's government had already shelved a round of negotiations in May and informal talks in July this year, citing deadly guerrilla attacks on security forces.
The president said a rebel ambush in the southern Philippines this month had killed a police officer and four- month-old baby.
"If you behave like that and we will go to war -- even the civilians are being dragged into this -- then we should just stop talking."
Last month Duterte also accused the communists of plotting with his other foes to destabilise his rule.
He added Tuesday he would issue a proclamation declaring the rebels a "terrorist" organisation and order the arrest of more than a dozen rebel leaders he had freed last year.
"This is an unfortunate development in our work for peace. Never before have we all reached this far in our negotiations with them," his statement said.
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