I came to know recently that I will not be able to continue my PhD. I have completed 21 months in my project and it is a collaboration work with other university. My Prof decided to fail me to go to the next stage due to lack of funding and also problem with collaboration. I have a good relation with my Professor though, but it did not help me in anyway. She decided me to give Masters in 'research' degree, but i already own masters degree in molecular biology. With two masters what will I do?

I would like to know that, can I ask for MPhil degree or can i carry these credits and continue my Phd in other university? I do not want to spend 3 more years again for PhD. There must be some way to get my PhD. I am shocked and heart broken. Any suggestion will be much appreciated. Thanks !