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The Court of Arbitration for Sport (CAS) has thrown out Marseille's appeal over the transfer of Mathieu Flamini to Arsenal.
The midfielder was a product of the Marseille youth system but joined Arsenal for free in July 2004 because he had yet to sign his first professional contract.
"The Court of Arbitration for Sport has dismissed the appeal filed by Olympique de Marseille and has confirmed the authorisation granted by FIFA to Arsenal FC to register the player Mathieu Flamini," read a statement on the CAS website.
"The CAS has also confirmed the training compensation of $480,000 [£272,000] allocated to Olympique de Marseille by FIFA."
When Marseille initially complained last year, the French Federation refused to grant Flamini an international certificate, but they were forced to give in when FIFA backed the deal.
Marseille then took their case to the CAS, calling for the 21-year-old to be returned to France but ostensibly forcing Arsenal to pay a proper transfer fee.
Now that the CAS has ruled in the north London club's favour, though, Marseille have no further avenues to pursue.
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