The Australian who now rides for Team Ineos has 30 days to lodge his salary grievances with the Court of Arbitration for Sport.
"The UCI Arbitral Board issued today (Thursday 30 July AEST) a decision in the case opposing Mr Rohan Dennis to the paying agent Bahrain World Tour Cycling Team of the UCI WorldTeam Bahrain-McLaren," the UCI's statement read.
"The Panel dismissed the rider's claims. The decision may be appealed to the Court of Arbitration for Sport within 30 days."
Bahrain McLaren revealed last year the team terminated its contract with Dennis on 13th September 2019, two weeks before Dennis secured a second consecutive ITT world title.
His victory at the world championships came after a prolonged 10-week period away from racing, unusual for a rider participating in the world championships.
Dennis surfaced once during a reconnaissance of the Tokyo 2020 Olympics course with the Australian squad but hadn't raced for then Bahrain-Merida since his mysterious departure from the Tour de France.
The South Australian rode a non-team issue bike during the time trial, a blacked-out BMC model, after rumours of friction between the star rider and the team about the Dennis' time-trial specific equipment and clothing.
While not against regulations set down by the UCI, it signified a split between the team and the rider, underlined by the lack of congratulations from the team on social media following Dennis' TT victory.
Dennis had been contracted to the end of 2020, with the termination immediately referred to the UCI Arbitral Board, an official UCI tribunal that deals in matters of contract disputes between teams and riders.
The UCI Arbitral Board rules on any dispute between licence-holders, persons and entities who are subject to the provisions of the UCI Constitution and Regulations if the dispute concerns the application or interpretation thereof. It also rules on any other form of contractual dispute.