Derry City have been denied a UEFA licence to compete in this year’s Europa League competition as the Airtricity League club are serving a three-year European suspension.
UEFA’s three-year rule applies to the Brandywell club for going into liquidation and now City are being forced to serve the third year of the suspension this year despite an application by the Candystripes - supported by the FAI - for a relaxation of the rule.
A statement released by the FAI confirmed that: “The Football Association of Ireland today confirmed receipt of UEFA’s decision not to grant Derry City FC permission to apply for a licence to play in UEFA competition for the season 2012-13.
“An application was made to UEFA for a derogation of the ‘three-year’ rule, arguing that the club was a new entity, and as such was entitled to apply for a licence.
“Should no appeal of this decision be made to the Court of Arbitration for Sport (CAS), Bohemian FC will be nominated for UEFA competition in place of Derry City FC.”
City chairman Philip O’Doherty told the BBC: "Because the new club has only been in existence for two years - not three years - we had to apply for a derogation of the rule.
"We paid a lot of football debts that were nothing to do with us, but from the previous club but apparently we're not going to be accepted.
"I've just spoken to the manager (Declan Devine). He's absolutely gutted as are the rest of the board.
"The players will be gutted as well, not getting the chance to play on a larger stage and with the success they had a few years ago and obviously the recent success of Shamrock Rovers.
"It's a big, big disappointment for everyone involved."
O’Doherty admitted that the "hugely expensive option” of appealing to CAS is unlikely.