They remain banned from signing players until 2020
Chelsea have confirmed they will appeal their transfer ban to the Court of Arbitration for Sport.
They remain banned from making signings for the next two transfer windows, after partially failing in their appeal to the FIFA Appeal Committee.
The embargo was partially upheld, with one slight change; the club are permitted to sign domestic players under the age of 16, but cannot make any senior signings.
The club has since issued a statement, to say they will continue to fight against the ruling.
"Chelsea FC has today received the decision of the FIFA Appeal Committee."
"The Club notes that the FIFA Appeal Committee has decided to partially uphold the appeal lodged by Chelsea FC against the decision of the FIFA Disciplinary Committee. However, the Club is very disappointed that the transfer ban of two consecutive registration periods was not overturned.
"Chelsea FC categorically refutes the findings of the FIFA Appeal Committee. It acted in accordance with the relevant regulations and will appeal the decision to the Court of Arbitration for Sport (CAS)."
The club had been given the ban for charges relating to an investigation into the signing of players under the age of 18.
As well as the transfer ban, Chelsea's fine of £460,000 by FIFA remains in place.
If Chelsea fail in their appeal to CAS, it will leave the club in a precarious position. Maurizio Sarri's side would be unable to replace Eden Hazard, should he push through a move to Real Madrid in the summer.
The Blues are guaranteed to have Champions League football next season though, after Sunday's win against Watford at Stamford Bridge.
The two-window transfer ban does not extend to the Chelsea women's team.