The Court of Arbitration for Sport (CAS) has rejected an application from Salzburg for provisional measures to allow the Austrian club back into the competition, European soccer's governing body UEFA said in a statement on Wednesday.
UEFA banned Fenerbahce for two years in June in connection with a domestic match-fixing case in 2011. The Turkish club appealed to CAS and were re-admitted to the Champions League qualifying competition pending their final hearing.
Fenerbahce then beat Salzburg 4-2 on aggregate in the third qualifying round. Salzburg lodged a protest at UEFA which was dismissed on Aug. 9, followed by an appeal, also at UEFA, which was also rejected one week later.
The Turkish side faced Arsenal at home on Wednesday in the first leg of their playoff round tie hours after CAS began a two-day hearing into their Fenerbahce's case in Lausanne.
CAS has said it will announce the decision on August 28, one day after Fenerbahce visit Arsenal for the return leg.
Salzburg have not qualified for the Champions League group stage since a takeover by the Red Bull energy drinks manufacturer in 2005, despite winning the Austrian Bundesliga four times in that period.