The Rugby Football Union have ejected the Rugby Lions from National League Two South.
The 139-year-old club went into liquidation last month and were given until 5pm on Friday to meet their obligation to rugby creditors.
Having failed to meet the RFU's deadline, Rugby will play no part in the league for the forthcoming season.
"We hope that with the help and support of the local community the club will be able to rejoin the league structure in the future," said Peter Baines, the RFU's chairman of governance.
"Supporting our clubs and keeping players on the field is the core of what the RFU does but in this case the club was unable to satisfy its rugby creditors and meet agreed targets in line with our regulations.
"The consequences of getting into severe financial difficulties can be catastrophic for clubs and this event underlines how important it is for them to live within their means."
National League Two South will continue as a 15-team league.