Iraq has lost its last chance to get back into qualifying for the 2010 World Cup.
A court rejected an appeal to punish opponent Qatar for using an ineligible player.
The Court of Arbitration for Sport says the Iraqi Football Association was one day late paying an appeal fee to football's governing body FIFA.
Brazilian-born Emerson was a citizen of Qatar when he helped beat Iraq 2-0 in March. But he had also played for Brazil's under-20 team using a different name.
FIFA lets players change nationality but not play for two countries.
It banned Emerson but cleared Qatar of any wrongdoing, even though FIFA rules say Qatar should forfeit the match as a 3-0 defeat.
Sapa-AP
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