London Welsh say they are "extremely disappointed by the Independent Appeal Panel’s decision" to uphold the five-point deduction and £15,000 fine against the club, for fielded an ineligible player, Tyson Keats, in ten Aviva Premiership matches this season.
The decision means that the club remain five points adrift at the bottom of the Aviva Premiership.
In a statement London Welsh said that the RFU's decision to remove the additional suspended five-point penalty imposed until the end of the 2013-14 season, justified their decision to appeal.
The club is hugely disappointed by the decision of the Independent Appeal Panel to uphold the five-point deduction for this season.
We are particularly disappointed for the players, who’ve given everything they can for the club, and ultimately it is they who have been punished for something completely beyond their control.
However, there are still four games remaining in the season and the focus and efforts of the players, the coaching staff and everyone at London Welsh is now on those remaining matches.
More top news
Stars of Team GB at this years' Olympics were in Wales today, as part of ITV's I Am Team GB campaign.
As Wales gets involved in the country's biggest sports day - Our Olympians have been getting in on the action.
ITV switched off all of its channels for an hour on Saturday as part of a national sports day event.