The Spanish club have been excluded from the next Uefa club competition for which they should qualify, and could face further sanctions after failing to meet financial commitments
The Andalusians finished fourth in La Liga last season, sealing a place in the Champions League, and they have performed admirably thus far, topping a group containing AC Milan and Zenit St Petersburg.
However, they were plagued by financial troubles over the summer, and they will now be sanctioned for them by the authorities.
"The club is excluded from participating in the next Uefa club competition for which they would otherwise qualify in the next four seasons (i.e. 2013-14, 2014-15, 2015-16, 2016-17)," a statement read.
"In addition, Malaga will be excluded from a subsequent Uefa competition for which they would otherwise qualify (in the next four seasons) if they do not prove, by 31 March 2013, that they have no overdue payables towards football clubs or towards employees and/or social/tax authorities, in accordance with the Uefa Club Licensing and Financial Fair Play Regulations."
Istanbul giants Besiktas were not allowed to take up their place in the Europa League this season due to their financial situation.
Malaga are currently on course for a second straight top-four finish in La Liga this season, and currently sit behind reigning champions Real Madrid.