French football giants Olympique Lyonnais have been relegated to Ligue 2 following a meeting with the DNCG on Tuesday, the LFP confirmed in an official statement.
The seven-time Ligue 1 champions failed to meet the financial requirements set by French football's financial watchdog.
The club had been handed a provisional relegation in November, with the DNCG stipulating that demotion would be enforced if their financial situation did not improve.
Despite multiple attempts by Eagle Football Group, the consortium that owns Lyon, to demonstrate financial stability, the requirements were not satisfied.
Lyon will be playing in Ligue 2 next season after being relegated for financial issues
PA
The decision means Lyon will play in France's second tier next season.
American businessman John Textor attempted several financial manoeuvres to avoid relegation, including selling his stake in Premier League club Crystal Palace and divesting Lyon's women's team.
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These efforts by Eagle Football Group aimed to convince the DNCG that the club's financial situation had drastically improved.
The sale of Textor's 43 per cent stake in Crystal Palace was completed just a day before Tuesday's crucial meeting.
However, these measures proved insufficient to meet the stringent requirements set by the French football financial body.
The DNCG had warned in November that relegation would follow if adequate financial guarantees were not provided by the club.
Despite the relegation decision, Textor had expressed confidence following the meeting with authorities.
Speaking to the press, he said: "You can see from the contributions of our shareholders, we have invested new capital, not only for the DNCG, but also for our UEFA licensing process.
"Not to mention the good news of the sale of Crystal Palace. Our liquidity situation has improved considerably."
It remains to be seen what will happen to Lyon manager Paulo Fonseca and his players
PA
His optimism proved misplaced as the DNCG upheld its November provisional relegation ruling.
The club president and director of football Mickael Gerlinger had attended Tuesday's meeting in an attempt to overturn the initial decision dated 15 November.
The club's financial troubles stem from a reported debt of £149 million, which the DNCG cited when issuing the provisional relegation in November.
At that time, Textor had shown confidence "in the figures" and guaranteed that the club would "make several hundred million euros in the coming months".
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Lyon owner John Textor sold his shares in Crystal Palace
GettyLyon finished sixth in Ligue 1 last season and now face the prospect of second-tier football for the first time in decades.
The decision can still be appealed, though the LFP's confirmation suggests the relegation will stand.
Manager Paulo Fonseca's side are now in dire straits as they prepare for life in Ligue 2.
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