FIFA has rejected Barcelona's appeal to have their transfer ban lifted for the next two transfer windows.
The club will not be allowed to sign players during the upcoming January transfer window or next summer.
However, they have confirmed that their appeal will now move on to the Court of Arbitration for Sport.
Barca were hit with the sanction back in April after they were found to have breached rules relating to the "international transfer of minors".
As well as the ban, the club also been ordered to pay a fine of around £350,000 and told to regulate the situation within a period of 90 days.
Meanwhile, the Spanish Football Association has been fined £339,000 for their involvement and must "regularise their regulatory framework and existing system concerning the international transfer of minors in football".