Chris Williamson will not stand as a Labour candidate in the forthcoming general election.
A party source confirmed that Labour's National Executive Committee (NEC) deemed the former Derby North MP ineligible for selection as his disciplinary case is ongoing.
Mr Williamson had the whip withdrawn and his Labour membership suspended in February after repeated interventions in the ongoing row over antisemitism.
He was reprimanded after footage surfaced of him telling a Momentum meeting that Labour had been “too apologetic”.
He was readmitted and issued with a formal warning, but suspended again following a backlash from the Jewish community.
The Labour Party rulebook states that suspended members are ineligible to run as Labour candidates in elections, while the NEC must also endorse candidates.
The Jewish Labour Movement (JLM) welcomed the decision, but cautioned that it "does not mean their vetting system is fit for purpose".
A JLM spokesman added: "It's taken Labour months to reach the obvious conclusion that Chris Williamson does not deserve to be a Labour candidate.
"Williamson has been barred from standing, but only after several botched attempts and expensive legal action.
"This comes months too late and highlights the chaos of Labour's broken disciplinary system, where political loyalty trumps all other considerations.
"There are several NEC-endorsed Labour Party candidates who have serious failings on antisemitism and the party has turned a blind eye. Once again, Labour only takes action against racists when they become a political liability."
A spokesman for the Jewish Leadership Council added: "Good riddance. A couple of years too late."
Marie van der Zyl, President of the Board of Deputies, said: "The NEC ruling to bar Chris Williamson MP from standing again in Derby North is the correct one. However this is not enough.
"Labour’s leadership must now stop dragging their feet and act immediately to expel from the party this disgraced politician who has baited the Jewish community for far too long."
At an NEC meeting on Wednesday it was also announced that Stephen Hepburn and Roger Godsiff would not receive endorsement as Labour candidates.
