The Court of Arbitration for Sport (CAS) said it had dismissed Joseph Blatter's appeal and that his six-year ban from all football-related activities remained in force, as from October 8, 2015.
It also said that he had to pay a fine of 50,000 Swiss francs ($49.600), Deutsche Welle reports.
FIFA initially banned its former president along with then-UEFA President Michel Platini, for a period of eight years over a "disloyal payment" of two million Swiss francs in 2011. The payment from FIFA to Platini was made nine years after consultancy work had carried out.
FIFA's appeals committee later reduced the suspension to six years, however Blatter, who has always maintained his innocence, then took the case to the CAS.
In its statement, the CAS said that it found that by approving the 2011 payment, Blatter had "breached the FIFA Code of Ethics since the payment amounted to an undue gift as it had no contractual basis. The Panel further found that Mr Blatter unlawfully awarded contributions to Mr Platini under the FIFA Executive Committee retirement scheme which also amounted to an undue gift."
"The Panel determined that the sanction imposed was not disproportionate and therefore confirmed the Appealed Decision in full," it concluded.
