NBC News has decided not to pursue a post-prison interview with Paris Hilton. "It's not happening," an NBC News insider said. "We pulled out."

The news division had been in discussions with the Hilton family about having the jailed heiress talk with Today coanchor Meredith Vieira next week. The plans appeared to be on track until Friday afternoon, but insiders said the network had become frustrated with the family's demands.

NBC News execs may have also been put off by the negative publicity surrounding reports that it was paying for the Hilton interview. At no time did NBC News offer money for the sitdown, sources said. But discussions Hilton reps had with the network's entertainment division about a separate project created the appearance that the news interview was part of the deal. - Reporting by Stephen Battaglio

UPDATE: Larry King has since emerged as the one to get Paris Hilton's first out-of-jail sitdown; see Today's News for more.