Chester have been expelled from the Football Conference.
The Football Conference board recommended the action against the league's bottom club at a meeting of member clubs at Rushden & Diamonds this morning.
A statement read: "Member clubs of the Football Conference, at a general meeting held today, voted in support of the board of directors' recommendation to erase Chester City (2004) FC Ltd from membership in accordance with Article 5.2."
Earlier this month the club were suspended from the Conference after failing to fulfil their fixtures against Forest Green and Wrexham, and had been asked to prove that such a situation would not arise again.
Chester were unable to field a team for their game at Forest Green after unpaid players refused to get on the team bus.
They were also forced to postpone the derby clash with Wrexham because the local authority issued a prohibition notice on the Deva Stadium after police refused to man the game over an unpaid bill.
Chester were handed a 25-point penalty after falling into administration last summer and were a whopping 33 points adrift of safety.
They faced a winding-up order from Her Majesty's Revenue and Customs last month but were handed a 42-day adjournment, and the club was also put up for sale for £1.
A Conference spokesman confirmed Chester's records would be expunged.