Sergio Perez's five-place grid penalty will stand after the FIA upheld the Canadian stewards' verdict.
Perez was handed the penalty for his part in the crash that put both himself and Felipe Massa into the barriers in Montreal.
The stewards at the time ruled that the Force India driver had "changed his racing line which caused the impact" with Massa.
Perez protested his innocence and on Friday the FIA decided to review the penalty after it emerged that the Montreal stewards had not spoken with him as he was in hospital for a check-up.
But despite the Mexican racer being confident that he would be cleared, the stewards in Austria ruled on Friday afternoon that his penalty will stand.
"Having considered the new elements including hearing from team representatives and both drivers, and having viewed all available video evidence and examined both teams' and the FIA's telemetry, the Stewards decide that the original decision as handed down in Document 44 of the Canadian Grand Prix shall stand," said the FIA in a statement.
It added: "The driver of car 11 contended that the new elements(s) evidenced that in defending his position he was exercising his right, under Article 20.4 of the 2014 Formula One Sporting Regulations, to use the whole track.
"However, it was clear to the Stewards that the defence of his position occurred in the braking area. Article 20.4 specifically states that any right to defend by using the whole track must occur prior to any braking area.
"Accordingly the driver of Car 11 was not entitled to defend his position in the manner he did."
As such, Perez will start Sunday's Austrian GP five places lower than where he qualifies.