Malaga loses Europa League appeal
In December, UEFA ruled Malaga would be ineligible to play in Europe for two years, later reduced to one, for violations of financial fair play rules. Malaga appealed to CAS last week, but UEFA's ruling has been ratified.
A CAS statement read: "CAS has dismissed the appeal filed by Malaga against the decision taken on December 21, 2012 by the Adjudicatory Chamber of the UEFA Club Financial Control Body decision."
Malaga, which reached the Champions League quarterfinals under coach Manuel Pellegrini, then finished sixth in the Spanish league to earn a Europa League berth.
But with the CAS appeal thrown out, Malaga is set to be replaced in Europe's second-tier club competition by Sevilla.
UEFA's club finance judicial body also fined Malaga 300,000 euros ($398,000).
''The club will comply fully with the penalty imposed by UEFA by not participating in the next edition of the Europa League and paying a financial sanction,'' Malaga said in a statement after the CAS announcement on Tuesday.
The Associated Press was used in this report.