The Ukrainian League runners-up, who defeated PAOK on aggregate in the third qualifying round, were kicked out because of disciplinary proceedings related to match-fixing
Uefa has expressed its satisfaction with the Court of Arbitration for Sport (CAS) for upholding its decision to prevent Metalist Kharkiv from competing in this season's Champions League.
The Ukrainians had been scheduled to face Schalke in the final qualifying round before the group stages, but were expelled after the commencement of disciplinary proceedings against the club related to match-fixing.
Metalist appealed their one-year ban from all European competitions but the suspension has now been supported by the CAS.
"Uefa welcomes the CAS decision rejecting the application for provisional measures made by Metalist Kharkiv against the Uefa Appeals Body decision of August 13, 2013," a statement read.
"In rejecting the request of Metalist, the CAS has upheld the decision of the Uefa Appeals Body.
"It follows that PAOK will participate in the UEFA Champions League play-off match against Schalke, the first leg of which will take place on August 21, 2013 in Germany.
"The replacement of Metalist by PAOK was confirmed by the Uefa Emergency Panel earlier this week.
"The Ukrainian club had previously been found guilty of involvement in match-fixing, in a CAS ruling handed down on August 2, 2013."
Metalist had qualified for the Champions League by finishing second in the Ukranian Premier League last season.