The Hatters are disappointed to reveal that the Football League has written to the club to confirm that the Town will not be able to defend the Johnstone's Paint Trophy next season.
Despite relegation from the Football League the Hatters had hoped to take part in next season's competition after April's enthralling 3-2 extra-time win over Scunthorpe United at Wembley.
But in a letter written to Town Managing Director Gary Sweet, the League outlined that they wanted to keep the competition solely for clubs in Leagues 1 and 2.
A statement from the League said: "Luton Town's application to play in the 2009/10 Johnstone's Paint Trophy has been turned down by the Board following detailed consideration.
"Whilst, the Board acknowledges that this particular set of circumstances is likely to happen very rarely, it would set a precedent for winning clubs that are no longer in Leagues 1 or 2 to take part in the competition in the following season.
"It is reasonably likely that a future winner will also gain promotion to the Championship in the same season and in the Board's view this competition should remain the exclusive domain of League 1 and 2 clubs."
On the league's decision, Sweet said: "Everyone at Luton Town Football Club are hugely saddened by the Football League's verdict.
"To refuse the club entry into a competition we fully embraced and ultimately won in front of 42,000 of our own supporters, makes it even more galling.
"However, we are considering an appeal against the decision and hope the League will reconsider."
It means the club will now take part in three cup competitions instead of four next season.
The Hatters will be making their ever appearances in both the FA Trophy and Setanta Shield and will as enter the FA Cup at the fourth qualifying round stage.
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