Wolves have lost their appeal against Nenad Milijas' red card in Tuesday's 1-1 draw with Arsenal at the Emirates Stadium.
The Serbia international was dismissed late on by referee Stuart Attwell for a lunging tackle on Mikel Arteta.
Milijas appeared to win the ball before catching the Spaniard with his follow through, sparking a melee between the players.
Wolves boss Mick McCarthy insisted the challenge was 'never a red' and the club appealed against the decision.
However, an independent Regulatory Commission has dismissed Wolves' claim, meaning he will serve a three-match ban.
"An independent Regulatory Commission has dismissed a claim from Wolverhampton Wanderers midfielder Nenad Milijas, following his red card for serious foul play in Wolves' game against Arsenal on 27 December," read a statement on the FA's official website.
"Milijas has received a three match suspension starting with immediate effect."
Wolves have expressed their 'disappointment' at the ruling, stating the incident did not constitute serious foul play.
"We are hugely disappointed with the ruling," said secretary Richard Skirrow told the club's official website.
"From the video evidence of that challenge alone, we strongly believed we had very good grounds for appeal and this was an opinion that seemed to be shared by a lot of people who have viewed the incident.
"Our view that the dismissal and three match ban would be hugely disproportionate to the alleged offence was further reinforced by other incidents in the game.
"However, despite highlighting the inconsistency and harshness of Nenad's dismissal, we have been told that it was not deemed to be an obvious and serious error and, therefore, the original decision and resulting punishment stands.
"In our view it was certainly not serious foul play. Prior to Tuesday, Nenad had only six cautions in English football and no suspensions. Likewise, as a club, we are not serial appealers of red cards.
"In fact, on further reflection, 'disappointed' doesn't seem to do justice to the feelings of everyone at the club on hearing this decision."