Palermo must start again in the non-League after their place in Serie B was officially taken by Venezia.
The FIGC’s Federal Council confirmed the ruling on Friday, following on from considerations by the federation’s supervisory committee.
The official reason for the council’s decision is ‘administrative non-compliance’ on the part of the Rosanero.
Taking their place in the second tier is Venezia, who have been reinstated after their relegation to Serie C last season.
The Sicilians will now be forced to start again in Serie D, with possibly Sampdoria owner Massimo Ferrero behind them.