The FIA issued a full entry list for the 2003 season this morning, but omitted Arrows from that list, sparking new fears for its survival.
Arrows has been desperately trying to tie-up a survival package with German investors, and had hoped its application to the FIA would be granted.
However, financial troubles which left cars off the grid last season, and continuing uncertainty over its current financial health - the team recently applied for administration - is likely to have influenced the FIA's decision.
In the statement, the FIA said: "An application to compete was received from Arrows Grand Prix International but was declined for reasons which have been communicated to the Arrows team."
It is thought Arrows' only hope of lining-up in Australia for the first race of the season could be as a new team, which would involve paying a $48m deposit. It remains to be seen if any further intervention or rescue package will go far enough in convincing the FIA of the team's long-term health and allowing them back on to the entry list.
The team's confirmed on the 2003 entry list are: Scuderia Ferrari Marlboro, BMW WilliamsF1 Team, West McLaren Mercedes, Mild Seven Renault F1 Team, Sauber Petronas, Jordan Ford, Jaguar Racing, Lucky Strike Bar Honda, TBA Minardi TBA, and Panasonic Toyota Racing.
