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UEFA dropped Crystal Palace to the Conference League due to shared ownership with higher-placed Lyon.
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Palace plan to appeal the decision.
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Nottingham Forest will take their place in the Europa League.
Crystal Palace have been relegated from the Europa League into the UEFA Conference League after UEFA enforces its multi-club ownership rule.
Also Read: Four Clubs Banned from UEFA Competitions
American investor John Textor owns big stakes in both Palace and Olympique Lyonnais.
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Both teams earned Europa League spots, but UEFA demands any ownership conflict be settled by March 1.
Lyon finished sixth in Ligue 1—well above Palace’s 12th-place Premier League finish, so Lyon keep their Europa League slot and Palace move down.
Palace clinched a maiden European outing by lifting the FA Cup in May.
Textor tried to avoid punishment by agreeing to sell his 43 percent stake to Woody Johnson, but UEFA rejected the late deal.
Lyon then beat a financial-fair-play ruling on appeal, and Textor stepped aside from their daily operations.
UEFA took that as the green light to confirm Palace’s demotion.
Crystal Palace vow to appeal at the Court of Arbitration for Sport.
Meanwhile, Nottingham Forest who finished seventh in the Premier League will swap into Palace’s Europa League berth.