CRYSTAL PALACE have LOST their appeal to be reinstated into the Europa League.
The Eagles were demoted to the Conference League by UEFA last month due to multi-club ownership rules.
Europe's football governing body deemed them to have remained part of the same group as Lyon after the March 1 disengagement deadline - despite John Textor, majority owner of Eagle Football Holdings, selling his stake.
Palace subsequently submitted an appeal to the Court of Arbitration for Sport (CAS) in a bid to get reinstated.
However, that has now been dismissed.
A panel at an in-person hearing in Lausanne, Switzerland, last week found that Textor had shares in Crystal Palace and Lyon and was a board member with decisive influence over both clubs at the time of UEFA's assessment date.
It also dismissed the argument that Palace had unfair treatment in comparison to Lyon and Nottingham Forest.
It is understood that club officials will consider their legal options.
Crystal Palace will remain in the Conference League as a result, with Nottingham Forest keeping their place in the Europa League.
The latest development comes as a huge blow for Palace just one day after their Community Shield victory over Liverpool.
Oliver Glasner led the Eagles to their second trophy at the weekend.
Crystal Palace beat Liverpool on penalties to secure the silverware at Wembley.
The Reds took the lead through new boy Hugo Ekitike just four minutes into the clash.
Jean-Philippe Mateta then equalised from the penalty spot before Jeremie Frimpong fired Liverpool back in front.
The Premier League champions retained their lead for the majority of the match until Ismaila Sarr levelled the score in the late stages.
Dean Henderson was the hero in the shootout, limiting Liverpool to just two goals.
After the match, Crystal Palace boss Glasner admitted that he would not trade the Shield for a successful appeal.
He said: "No. The players were not scared of noise around us.
"Tomorrow we have no influence, so we celebrate tonight, meet tomorrow for lunch then training. We can't think about it."
Meanwhile, goalkeeper Henderson said: "We win the FA Cup, we are justified to be in the Europa League.
"For football purposes we deserve to be in the Europa League. I think it would devalue the competition unfortunately if we weren't in the Europa League.
"Things that are won on the pitch should be rewarded and I think every neutral football fan would agree with that. Let's see.
"I know the chairman [Steve Parish] has fought hard against it and fingers crossed we are in the Europa League like we deserve to be.
"I know Crystal Palace fans have waited 120 years, maybe even longer, for the first trophy and chance to go on a European tour.
"To have that taken away from us is just not right for football and I think everyone would agree with that. I am sure they will see sense and put us back in the Europa League."