This comes in the wake of the club failing to fulfill six of their seven games in the competition this season.
An RFL statement reads:
“York have also been informed that the RFL will not accept any application from the club for entry to the 2016 Championships Reserve Grade competition.
“In addition, the RFL has instructed York to ensure that any legitimate costs incurred by opposition clubs in relation to the cancelled fixtures are promptly paid in full.”
The whole reserve squad at York was released from the club earlier this week.