An independent tribunal has upheld the Football League's 15-point penalty imposed on Leeds at the start of the season.
A three-day hearing reached its conclusion behind closed doors on Thursday in London where Leeds failed to convince a three-man panel that the League acted unfairly when docking the points as punishment for breaking competition rules on insolvency.
The hearing's decision to rule in the League's favour sees Leeds stay in sixth place in Coca-Cola League One - and they must now hope to secure promotion via a play-off place.
The penalty was a punishment for breaking competition insolvency rules.
Leeds had already been docked 10 points for entering administration at the end of last season while still in the Championship.
The club strongly felt that the additional penalty was unduly harsh.
The decision means Swansea are now confirmed as champions, with Doncaster favourites to claim the second automatic promotion slot.
Leeds United chairman Ken Bates believes the club have won a moral victory despite failing in their bid to have their 15 point deduction reinstated.
Bates said: "In many ways, I think we've had overall a moral victory because some of the points the tribunal made are I think unfair and unjust towards Leeds.
"But we'll live with that and get on with our lives. We have three games to get back into the Championship."