Palermo has been relegated to Serie C due to financial irregularities, the Italian Football Federation (FIGC) has confirmed.
Palermo finished third in Serie B and was set to take their place in the promotion play-offs but have been moved to the bottom of the table by a decision from the FIGC's national court.
It said the Sicilian club was sanctioned "for a series of management irregularities by some former directors".
Palermo was relegated from Serie A in 2016-17 and failed to gain promotion through the playoffs after finishing fourth in their first season in the second tier.
The club, who are expected to appeal against the punishment, has seen several takeover attempts fall through this year.
Perugia will take Palermo's place in the promotion play-offs, while Venezia is now guaranteed to stay in the second tier. The relegation play-out will be contested by Foggia and Salernitana.