Gold Coast United has been axed from the Australian A-League but the national competition will remain at 10 teams following this week's announcement of a new Western Sydney franchise.
Football Federation Australia said their level of public and corporate support fell below the minimum requirements for a professional club.
The decision was expected following Wednesday's announcement that a team based in Sydney's west would join the A-League next season with the FFA initially financially underpinning the new franchise over the first two to three years.
The future of Gold Coast United was thrown into doubt after the FFA stripped billionaire miner Clive Palmer of his ownership licence in February for contravening competition regulations.
United finished bottom of the A-League ladder and some players have already signed for other clubs for next season.
The FFA said no viable business plan and adequate capital investment had materialised since the termination of the licence held by Palmer's Gold Coast United Pty Ltd on February 29.
"FFA is bitterly disappointed that Gold Coast United Pty Ltd failed to develop a market for football on the Gold Coast over the past three seasons," FFA chief executive Ben Buckley said.
"Today's decision to exit can be directly attributed to Gold Coast United Pty Ltd's lack of community engagement and its inability to build a football culture around the club."
Buckley said the FFA acknowledged the hard work and commitment over the past six weeks by Football Queensland, Gold Coast Football Association, the Gold Coast players and coach Mike Mulvey.
"The team showed great professionalism and pride in performance in the way they completed the season," he said.
"FFA's mandate is to govern for the good of the game and this decision is the only responsible course to take in ensuring we have a sustainable A-League."
Gold Coast United become the third team axed from the A-League following the demise of North Queensland Fury at the end of last season and the New Zealand Knights in 2007.
Fury and Gold Coast were added to the A-League in August 2009 and both have become extinct in less than three years.
