The FIA yesterday confirmed ten teams had been accepted on its entry list for the 2003 series, but said an application from Arrows had been rejected.
Arrows has been struggling financially for many months, forcing the team off the grid of a number of Grand Prix last season.
It is believed to be close to signing a rescue deal with German businessman Oliver Behring, heading up an group of Arab investors. However, that deal is now thought to be in danger given the FIA's decision.
Now Arrows has told the Italian media it will challenge the FIA.
Speaking in the Gazetta dello Sport, Daniele Audetto, commercial director of the TWR Group that owns Arrows, said:"We will appeal against the FIA's decision, we will ask for the intervention of the F1 commission.
"It's true that they [the new investors] had not yet paid us but they were waiting to do so after the world championship entry had been confirmed."
It leaves Arrows' future hanging in the balance.
