Instead, the one-eyed leader with a $10 million bounty on his head has repeated his threat to prosecute Karzai in an Islamic court for the "massacre" of Afghans.
"The infidels of the entire world have gathered in Afghanistan, occupied it and taken the Afghans hostage," spokesman Tayyab Agha said by satellite phone from a secret location.
"There can be no talks with the Afghan puppet government in the presence of foreign occupying forces.
"Neither will the mujahideen lay down their weapons.
"Hamid Karzai and his colleagues should first free themselves from the slavery of foreign infidels and then invite us for negotiations."
Karzai had realised the Taliban would eventually defeat NATO and US forces and was looking for an escape, Agha added.
Karzai on Friday repeated his offer for talks if the Taliban leadership met several conditions, including ending support from elements in Pakistan and the involvement of foreign fighters.
The Taliban has rejected all previous offers.
"The Taliban will not negotiate in the presence of foreign forces and will continue their armed jihad under Mullah Omar's leadership until the ouster of foreign forces,' Agha said.

Copyright Reuters, 2006